a. Prepare the required adjusting entries for inventory under perpetual and periodic inventory system. The following balances are found in the general ledger of GHI Sales after recordingthe necessary adjusting entries, except for inventories, in the year 2014:5,000,0005,000PurchasesFreight-inPurchase Returns2,100,00010,00020,000Inventory, beginningCastro, CapitalCastro, Drawing50,0002,000,000500,000500,000SalesSales ReturnsSales Discounts10,000Interest Revenue 25,000Selling Expense 450,000Interest Expense 15,000Accounts Payable 300.000Administrative ExpenseAccounts Receivable1,500,000The ending inventory based on physical count in P140,000.

The adjustment entries are prepared to adjust the revenue and expenses of the current period.

The following balances are found in the general ledger of GHI Sales after recording he necessary adjusting entries, except for inventories, in the year 2014: 5,000,000 2,100,000 10,000 Purchases Freight-in Purchase Returns 20,000 Inventory, beginning Castro, Capital Castro, Drawing 50,000 2,000,000 500,000 Sales Sales Returns 5,000 10,000 Selling Expense Interest Revenue 25,000 450,000 Interest Expense 15,000 Accounts Payable 202.000 Sales Discounts Administrative Expense 500,000 Accounts Receivable 1,500,000 The ending inventory based on physical count in P140.000.

The following balances are found in the general ledger of GHI Sales after recording he necessary adjusting entries, except for inventories, in the year 2014: 5,000,000 2,100,000 10,000 Purchases Freight-in Purchase Returns 20,000 Inventory, beginning Castro, Capital Castro, Drawing 50,000 2,000,000 500,000 Sales Sales Returns 5,000 10,000 Selling Expense Interest Revenue 25,000 450,000 Interest Expense 15,000 Accounts Payable 202.000 Sales Discounts Administrative Expense 500,000 Accounts Receivable 1,500,000 The ending inventory based on physical count in P140.000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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