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You were able to gather the following in connection with our audit of the TMC Corporation for the year ended December 31, 2021.
|
|
Jan 1, 2021 |
Dec 31, 2021 |
|
Accounts Receivable |
6,400,000 |
4,000,000 |
|
Unpaid Merchandise invoices |
? |
2,621,000 |
|
Accrued Wages |
85,000 |
125,000 |
|
Advertising supplies inventory |
35,000 |
75,000 |
|
Accrued advertising expense |
14,250 |
40,000 |
|
Prepaid Insurance |
25,000 |
0 |
|
Unexpired insurance |
0 |
41,000 |
During the year:
- Amount collected from customers, P10,000,000
- Total payments to suppliers of merchandise 13,618,000
- Total payments to suppliers of merchandise of prior years 4,632,000
- Salaries paid 3,050,000
- Advertising paid which includes 40,000 applicable in 2022, 300,000
- Insurance premium paid, P125,000
Questions:
1. Net Sales for 2021
2. Net purchases for 2021
3. Salaries expense for 2021
4. Advertising expense for 2021
5.Insurance expense for 2021
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- You were able to gather the following in connection with our audit of the TMC Corporation for the year ended December 31, 2018. Dec. 31, 2017 Dec 31, 2018 Accounts Receivable 6,400,000 4,000,000 Unpaid Merchandise invoices ? 2,621,000 Accrued Wages 85,000 125,000 Advertising supplies inventory 35,000 75,000 Accrued advertising expense 14,250 40,000 Prepaid Insurance 25,000 0 Unexpired insurance 0 41,000 During the year: Amount collected from customers, P10,000,000 Wages paid, P3,050,000 Advertising paid which includes, P250,000 Insurance premium paid, P125,000 Total payments to suppliers of merchandise, P13,618,000 Total payments to suppliers of merchandise of prior years, P4,632,000 Requirements: Compute for the Accrual advertising expense in 20189999...last recheck You have completed the field work in connection with your audit of Carla Corporation for the year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31,2020 Dec. 31,2019 Increase or(Decrease) Cash $311,248 $333,760 ($22,512 ) Accounts receivable 525,755 395,360 130,395 Inventory 830,704 683,200 147,504 Prepaid expenses 13,440 8,960 4,480 Investment in subsidiary 123,760 0 123,760 Cash surrender value of life insurance 2,580 2,016 564 Machinery 231,840 212,800 19,040 Buildings 599,424 456,848 142,576 Land 58,800 58,800 0 Patents 77,280 71,680 5,600 Copyrights 44,800 56,000 (11,200 ) Bond discount and issue cost 5,042 0 5,042 $2,824,673 $2,279,424 $545,249…A purchases cut-off procedure was rendered by your audit staff in line with your audit of the financial statements of Friday Corp. for the period ended December 31, 2021. Inventories were physically counted on December 29 as a result, all goods received on or before December 29 has been included in the physical count which amounted to P449,000. Purchases and Accounts Payable balances per books were at P2,895,000 and P578,000, respectively. Receiving Report No. Receipt Date Invoice Price Remarks 816913 Dec. 28 10,600 Received on consignment basis 816914 Dec. 29 13,600 FOB Destination 816915 Dec. 30 15,000 FOB Shipping Point 816917 Dec, 31 10,800 FOB Shipping Point 816918 Dec. 31 7,200 Free Alongside the Vessel 816919 Dec. 31 14,500 FOB Destination 816920 Jan. 2 8,200 FOB Shipping Point 816921 Jan. 2 9,600 FOB Seller (In-transit) 816922 Jan. 2 9,100…
- In your audit of Ledo Plastic Corporation , you noted that the company’s statement of financial position shows the accounts receivable balance as at December 31, 2020 as follows : Accounts Receivable P 3,600,000 Allowance for Doubtful Accounts 72,000 P 3,528,000 During 2021 , transactions relating to the accounts were as follows: Sales on account , P 38,400,000 Cash received from collection of current receivable totaled P 31,360,000 after discount of P 640,000 were allowed for prompt payment Customer’s accounts of P 160,000 were ascertained to be worthless and were written off Bad debts accounts previously written prior to 2021 amounting to P 40,000 were recovered The company decided to provide for P 184,000 for doubtful accounts by journal entry at the end of the year Accounts receivable of P 5,600,000 have been pledged to a local bank on a loan of P 3,200,000. Collections of P 1,200,000 were made on these receivables (not…You are engaged in the audit of Kaya Co., a new client, on December 31,2018. You review the following accounts in the general ledger: Accounts Receivable Beg.Bal., P200,000 Sales 4,000,000 Total P4,200,000 Loan Receivable Loan granted to a customer, 1/1/2018 P3,600,000 P4,000,000 400,000 Total P4,000,000 P4,000,000 Unearned Interest Income orig. Fees Direct P11,520 Balance 288,480 Total P300,000 in 1/1/2018 P2,596,000 1,484,000 120,000 Accounts receivable Retained earnings b. Sales discount 2018 Loan receivable b. Loan receivable paid end uncollectible P4,200,000 Unearned interest income a. P2,720,000 b. P2,750,000 P300,000 Additional information: A. The beginning balance of the accounts receivable on January 1,2018 was net of the allowance for doubtful accounts in 2017 amounting to P20,000. One of the credits in the accounts receivable was made as a result of cash collections. When receivables were collected, the bookkeeper credited accounts receivable for the cash collected.…Atlantic Company reported the following net income: Year 2021 - P 4,000,000, and year 2022 - P 5,000,000. During your audit for the year 2022, the following errors were revealed: A cash collection of P 100,000 was received from a customer on December 28, 2022 but not recorded until January 4, 2023. Received a supplier's invoice on December 29, 2022 for P 160,000 worth of merchandise also received on the same date but no entry was made until January 5, 2023. Inventories on December 31, 2021 and 2022 wee correctly stated. Depreciation for the year 2021 was understated by P 90,000. The office supplies purchased on November 10, 2022 amounting to P 20,000 was charged to purchases account. The company's accounting policy is to expense office supplies as expensed when incurred. Sales invoice dated December 30, 2022 amounting to P 300,000 was recorded only on January 3, 2023. What is the corrected net income for the year 2022? a. 3,910,000b. 5,140,000c. 4,540,000d. 5,460,000
- Existence of Accounts ReceivableTo substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio Company, you have decided to send confirmation requests to customers. Below is a summary of the confirmation replies together with the exceptions and audit findings. Gross profit on sales is 20%. The company is under the perpetual inventory method. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2,2021. Correct balance is20,000. Returned goods receivedJanuary 5, 2021. Pacturan 10,000 Your credit memorepresenting priceadjustment datedDecember 29. 2020cancels this. The credit memo wastaken up by Pacturan in2021 Badilla 48,000 You have overpriced usby P50. Correct priceshould be P100. The complaint is valid. Villaranda 37,500 We received the goodsonly on January 5, 2021. Term is shipping pointshipped in 2020. Dacer 45,000 Balance was offset by ourDecember shipment ofyour raw…Existence of Accounts ReceivableTo substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio Company, you have decided to send confirmation requests to customers. Below is a summary of the confirmation replies together with the exceptions and audit findings. Gross profit on sales is 20%. The company is under the perpetual inventory method. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2,2021. Correct balance is20,000. Returned goods receivedJanuary 5, 2021. Pacturan 10,000 Your credit memorepresenting priceadjustment datedDecember 29. 2020cancels this. The credit memo wastaken up by Pacturan in2021 Badilla 48,000 You have overpriced usby P50. Correct priceshould be P100. The complaint is valid. Villaranda 37,500 We received the goodsonly on January 5, 2021. Term is shipping pointshipped in 2020. Dacer 45,000 Balance was offset by ourDecember shipment ofyour raw…Existence of Accounts ReceivableTo substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio Company, you have decided to send confirmation requests to customers. Below is a summary of the confirmation replies together with the exceptions and audit findings. Gross profit on sales is 20%. The company is under the perpetual inventory method. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2,2021. Correct balance is20,000. Returned goods receivedJanuary 5, 2021. Pacturan 10,000 Your credit memorepresenting priceadjustment datedDecember 29. 2020cancels this. The credit memo wastaken up by Pacturan in2021 Badilla 48,000 You have overpriced usby P50. Correct priceshould be P100. The complaint is valid. Villaranda 37,500 We received the goodsonly on January 5, 2021. Term is shipping pointshipped in 2020. Dacer 45,000 Balance was offset by ourDecember shipment ofyour raw…
- Existence of Accounts ReceivableTo substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio Company, you have decided to send confirmation requests to customers. Below is a summary of the confirmation replies together with the exceptions and audit findings. Gross profit on sales is 20%. The company is under the perpetual inventory method. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2,2021. Correct balance is20,000. Returned goods receivedJanuary 5, 2021. Pacturan 10,000 Your credit memorepresenting priceadjustment datedDecember 29. 2020cancels this. The credit memo wastaken up by Pacturan in2021 Badilla 48,000 You have overpriced usby P50. Correct priceshould be P100. The complaint is valid. Villaranda 37,500 We received the goodsonly on January 5, 2021. Term is shipping pointshipped in 2020. Dacer 45,000 Balance was offset by ourDecember shipment ofyour raw…Existence of Accounts ReceivableTo substantiate the existence of the accounts receivable balances as at December 31, 2020 of Guipetacio Company, you have decided to send confirmation requests to customers. Below is a summary of the confirmation replies together with the exceptions and audit findings. Gross profit on sales is 20%. The company is under the perpetual inventory method. Customer Balances per Books (in PHP) Comments from customers Audit Findings Abejo 50,000 P30,000 on January 2,2021. Correct balance is20,000. Returned goods receivedJanuary 5, 2021. Pacturan 10,000 Your credit memorepresenting priceadjustment datedDecember 29. 2020cancels this. The credit memo wastaken up by Pacturan in2021 Badilla 48,000 You have overpriced usby P50. Correct priceshould be P100. The complaint is valid. Villaranda 37,500 We received the goodsonly on January 5, 2021. Term is shipping pointshipped in 2020. Dacer 45,000 Balance was offset by ourDecember shipment ofyour raw…Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. Inventory at December 31, 2020 was understated by P 80,000. Inventory at December 31, 2021 was understated by P 120,000. • The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. • The gross profit on sales is 40%. The net income for the year ended December 31, 2021 before any adjustments is P 1,550,000. O 1,550,000 O 1,200,000 O 1.440,000 O 1.600,000
