Problem 10: You were tasked to audit the books of Plusplus Inc, a business personally owned by Ross Dagadag. Your task is to audit the inventory items which the company currently reports at P350,000 based on a physical count made before business hours on December 27, 2020 and the company's accounts payable which amounts to P275,000. The following invoices are for merchandise purchases entered in the voucher register of the company. Date of invoice Merchandise received Invoice no. December Register 2501 2502 2503 2504 2505 Amount F.O.B. P5,000 Destination 1,000 Shipping pt 4,000 Shipping pt 2,000 Destination 10,000 Destination Dec 25 Dec 27 Dec 27 Dec 30 Dec 22 January 5 Dec 29 January 4 January 8 Dec 30 January Register 2506 2507 2508 2509 2510 2511 Dec 30 Dec 30 Dec 26 11,000 Destination 8,000 Destination 9,000 Shipping pt 7,000 Shipping pt 6,000 Shipping pt 3,000 Destination Dec 30 Dec 26 January 2 Dec 25 January 7 January 5 Dec 29 January 5 Dec 30 The company returned damaged goods which they purchased for cash on December 30. The debit memo is. dated January 5. No perpetual inventory records are kept and the physical inventory is to be used as a basis for the financial statements. Determine the following: 26. The adjusted balance of ending inventory to be reported in the books of the company. 27. The adjusted balance of accounts payable to be reported in the balance sheet. 28. One compound adjustment to correct the above accounts.
Problem 10: You were tasked to audit the books of Plusplus Inc, a business personally owned by Ross Dagadag. Your task is to audit the inventory items which the company currently reports at P350,000 based on a physical count made before business hours on December 27, 2020 and the company's accounts payable which amounts to P275,000. The following invoices are for merchandise purchases entered in the voucher register of the company. Date of invoice Merchandise received Invoice no. December Register 2501 2502 2503 2504 2505 Amount F.O.B. P5,000 Destination 1,000 Shipping pt 4,000 Shipping pt 2,000 Destination 10,000 Destination Dec 25 Dec 27 Dec 27 Dec 30 Dec 22 January 5 Dec 29 January 4 January 8 Dec 30 January Register 2506 2507 2508 2509 2510 2511 Dec 30 Dec 30 Dec 26 11,000 Destination 8,000 Destination 9,000 Shipping pt 7,000 Shipping pt 6,000 Shipping pt 3,000 Destination Dec 30 Dec 26 January 2 Dec 25 January 7 January 5 Dec 29 January 5 Dec 30 The company returned damaged goods which they purchased for cash on December 30. The debit memo is. dated January 5. No perpetual inventory records are kept and the physical inventory is to be used as a basis for the financial statements. Determine the following: 26. The adjusted balance of ending inventory to be reported in the books of the company. 27. The adjusted balance of accounts payable to be reported in the balance sheet. 28. One compound adjustment to correct the above accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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