What is the adjusted balance of Accounts Payable on December 31,2021? You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendaryear basis. The following data were found during your audit:a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 had beenexcluded from the inventory, and further testing revealed that the purchase had beenrecorded.b) Goods costing P10,000 had been received, included in inventory, and recorded as a purchase.However, your inspection revealed that the goods were found to be defective and would beimmediately returned.c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had beensegregated in the warehouse for inventory as a signed purchase order had been received fromthe customer. Terms, FOB destination.d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statementfrom Mariel, Inc. listed those materials as on hand, the items had been excluded from thefinal inventory and invoiced on December 31 at P16,000.e) The sale of P30,000 worth of materials and costing P24,000 had been shipped FOB point ofshipment on December 31. However, this inventory was found to be included in the finalinventory.Further inspection of the client's records revealed the following December 31, 2021 balances:Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; SalesP1,010,000; Purchases; #640,000; Net income, P180,400.

Accounts payable are amounts owed to vendors or suppliers for goods or services not yet paid for.…

You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a ca vear basis. The following data were found during your audit: a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 excluded from the inventory, and further testing revealed that the purchase recorded. b) Goods costing P10,000 had been received, included in inventory, and recorded as a However, your inspection revealed that the goods were found to be defective and immediately returned. :) Materials costing P50,000 and billed on December 30 at a selling price of P64,000,

You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a ca vear basis. The following data were found during your audit: a) Goods in transit shipped FOB destination by a supplier in the amount of P20,000 excluded from the inventory, and further testing revealed that the purchase recorded. b) Goods costing P10,000 had been received, included in inventory, and recorded as a However, your inspection revealed that the goods were found to be defective and immediately returned. :) Materials costing P50,000 and billed on December 30 at a selling price of P64,000,

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter4: Professional Liability, Auditor Judgment Frameworks, And Professional Responsibilities

Section: Chapter Questions

Problem 54RSCQ

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