What is the correct amount of inventory on December 31, 2021? Emperador Company counted and reported the ending inventory on December 31, 2021, at P2,800,000. The following items were not yet included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse that are on consignment from another entity Goods sold by the entity and shipped FOB destination was in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 Goods purchased by the entity and shipped FOB seller were in transit on Dec. 31, 2021, and receive by the entity on January 2, 2022 Goods sold by the entity and shipped FOB shipping point were in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 P285,000 P310,000 P440,000 P550,000

What is the correct amount of inventory on December 31, 2021? Emperador Company counted and reported the ending inventory on December 31, 2021, at P2,800,000. The following items were not yet included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse that are on consignment from another entity Goods sold by the entity and shipped FOB destination was in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 Goods purchased by the entity and shipped FOB seller were in transit on Dec. 31, 2021, and receive by the entity on January 2, 2022 Goods sold by the entity and shipped FOB shipping point were in transit on Dec. 31, 2021, and received by the customer on January 2, 2022 P285,000 P310,000 P440,000 P550,000

Name: What is the correct amount ofinventory on December 31, 2021?Emperador
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Description: What is the correct amount ofinventory on December 31, 2021?Emperador Company counted and reported the ending inventory on December 31, 2021, at P2,800,000.The following items were not yet included when the total amount of the ending inventory wasco

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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You have been assigned to examine the financial statements of PC corp. for the year ended December 31, 2021, as prepared following IFRS. You discover the following situations: 1. Physical inventory count on Dec 31, 2021, improperly included merchandise costing $3,800 that had been sold but not delivered until Jan 5, 2022. PC uses a periodic inventory system. 2. Depreciation of $1,700 for 2021 on delivery vehicles was not recorded. 3. A collection of $4,600 on account from a customer received on Dec 31, 2021, was not recorded. 4. At the beginning of 2020, the company purchased equipment for $225,000 (residual value $22,500) and had a useful life of 6 years. The accountant used straight-line amortization but failed to deduct the residual value in the calculation of the depreciation for 2020 and 2021. Instructions: Prepare the required journal entries (if any) to correct PC accounts, assuming each transaction is independent and assuming 2021 books are not closed.