The following information relates to Winger Company's obligations as of December 31, 2021. You are assigned to determine the amount that should be reported as part of the "Accounts payable and accrued expenses" line item in the December 31, 2021 statement of financial position. Accounts payable Accounts payable per general ledger control amounted to P5,440,000, net of P240,000 debit balances in suppliers' accounts. The unpaid voucher file included the following items that had not been recorded as of December 31, 2021: a) Bo Company - P224,000 merchandise shipped on December 31, 2021, FOB destination; received on January 10, 2022. b) Dean Co.-P192,000 merchandise shipped on December 26, 2021, FOB shipping point; received on January 16, 2022. c) Craig Super Services - P144,000 janitorial services for the three-month period ending January 31, 2022. d) Manila Electric Company - P67,200 electric bill covering period December 16, 2021 to January 15, 2022. On December 28, 2021, a supplier authorized Winger to return goods billed at P160,000 and shipped on December 20, 2021. The good were returned by Winger on December 28, 2021, but the credit memo was not received until January 6, 2022. Purchase commitment During 2021, Winger entered into a noncancellable commitment to purchase 320,000 units of inventory at fixed price of P5 per unit, delivery to be made in 2022. On December 31, 2021, the purchase price of this inventory item had fallen to P4.40 per unit. The goods covered by the purchase contract were delivered on January 28, 2022. Product warranty Winger has a one year product warranty on selected items in its product line. The estimated warranty liability on sales made during 2020, which was outstanding as of December 31, 2020, amounted to P416,000. The warranty costs on sales made in 2021 are estimated at P1,504,000. Actual warranty costs incurred during 2021 are as follows: Warranty claims honored on 2020 sales Warranty claims honored on 2021 sales Total warranty claims honored P 416,000 992,000 1,408,000 Premiums To increase sales, Winger inaugurated a promotional campaign on June 30, 2021. Winger placed a coupon redeemable for a premium in each package of product sold. Each premium costs P100. A premium is offered to customers who send in 5 coupons and a remittance of P30. The distribution cost per premium is P20. Winger estimated that only 60% of the coupons will be redeemed. For the six months ended December 31, 2021, the following information is available: Packages of product sold Premiums purchased Coupons redeemed 160,000 16,000 64,000 Bonuses Winger's president gets an annual bonus of 10% of net income after bonus and income tax. The company is subject to the regular corporate income tax of 30% and the adjusted net income before bonus and tax is P9,600,000. [ignore the effects of other given items on net income.] Required: Determine the amount that should be reported as part of the "Accounts payable and accrued expenses" line item in the December 31, 2021 statement of financial position.
The following information relates to Winger Company's obligations as of December 31, 2021. You are assigned to determine the amount that should be reported as part of the "Accounts payable and accrued expenses" line item in the December 31, 2021 statement of financial position. Accounts payable Accounts payable per general ledger control amounted to P5,440,000, net of P240,000 debit balances in suppliers' accounts. The unpaid voucher file included the following items that had not been recorded as of December 31, 2021: a) Bo Company - P224,000 merchandise shipped on December 31, 2021, FOB destination; received on January 10, 2022. b) Dean Co.-P192,000 merchandise shipped on December 26, 2021, FOB shipping point; received on January 16, 2022. c) Craig Super Services - P144,000 janitorial services for the three-month period ending January 31, 2022. d) Manila Electric Company - P67,200 electric bill covering period December 16, 2021 to January 15, 2022. On December 28, 2021, a supplier authorized Winger to return goods billed at P160,000 and shipped on December 20, 2021. The good were returned by Winger on December 28, 2021, but the credit memo was not received until January 6, 2022. Purchase commitment During 2021, Winger entered into a noncancellable commitment to purchase 320,000 units of inventory at fixed price of P5 per unit, delivery to be made in 2022. On December 31, 2021, the purchase price of this inventory item had fallen to P4.40 per unit. The goods covered by the purchase contract were delivered on January 28, 2022. Product warranty Winger has a one year product warranty on selected items in its product line. The estimated warranty liability on sales made during 2020, which was outstanding as of December 31, 2020, amounted to P416,000. The warranty costs on sales made in 2021 are estimated at P1,504,000. Actual warranty costs incurred during 2021 are as follows: Warranty claims honored on 2020 sales Warranty claims honored on 2021 sales Total warranty claims honored P 416,000 992,000 1,408,000 Premiums To increase sales, Winger inaugurated a promotional campaign on June 30, 2021. Winger placed a coupon redeemable for a premium in each package of product sold. Each premium costs P100. A premium is offered to customers who send in 5 coupons and a remittance of P30. The distribution cost per premium is P20. Winger estimated that only 60% of the coupons will be redeemed. For the six months ended December 31, 2021, the following information is available: Packages of product sold Premiums purchased Coupons redeemed 160,000 16,000 64,000 Bonuses Winger's president gets an annual bonus of 10% of net income after bonus and income tax. The company is subject to the regular corporate income tax of 30% and the adjusted net income before bonus and tax is P9,600,000. [ignore the effects of other given items on net income.] Required: Determine the amount that should be reported as part of the "Accounts payable and accrued expenses" line item in the December 31, 2021 statement of financial position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education