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You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year 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 been excluded from the inventory, and further testing revealed that the purchase had been recorded. 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 be immediately returned. c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final 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 of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the clients records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; #640,000; Net income, F180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts payable, December 31, 2021

You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year 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 been excluded from the inventory, and further testing revealed that the purchase had been recorded. 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 be immediately returned. c) Materials costing P50,000 and billed on December 30 at a selling price of P64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final 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 of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the clients records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; #640,000; Net income, F180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts payable, December 31, 2021

FINANCIAL ACCOUNTING
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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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 calendar year 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 been excluded from the inventory, and further testing revealed that the purchase had been recorded. 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 be immediately returned. c) Materials costing #50,000 and billed on December 30 at a selling price of #64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final 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 of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the clients records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; P640,000; Net income, F180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts payable, December 31, 2021
Transcribed Image Text:You are engaged in the audit of Eunise Co., a new client. The Eunise Company is on a calendar year 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 been excluded from the inventory, and further testing revealed that the purchase had been recorded. 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 be immediately returned. c) Materials costing #50,000 and billed on December 30 at a selling price of #64,000, had been segregated in the warehouse for inventory as a signed purchase order had been received from the customer. Terms, FOB destination. d) Goods costing P14,000 was out on consignment with Mariel, Inc. Since the monthly statement from Mariel, Inc. listed those materials as on hand, the items had been excluded from the final 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 of shipment on December 31. However, this inventory was found to be included in the final inventory. Further inspection of the clients records revealed the following December 31, 2021 balances: Inventory, P220,000; Accounts receivable, P104,000; Accounts payable, P138,000; Sales P1,010,000; Purchases; P640,000; Net income, F180,400. Questions: Based on the above and the result of your audit, determine the balances of the adjusted balance of accounts payable, December 31, 2021
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