Journal entries for inventories and accounts payable On December 31, 2006, the Merchandise Inventories account of the

Question:

Journal entries for inventories and accounts payable On December 31, 2006, the Merchandise Inventories account of the Japanese electronics firm Fujitsu Limited (Fujitsu) had a balance of ¥408,710 million, based on Fujitsu’s financial reports for fiscal 2007. Assume that during 2007, Fujitsu purchased merchandise inventories on account for ¥1,456,412 million. On December 31, 2007, it finds that merchandise inventory on hand is ¥412,387 million. The Accounts Payable account had a balance of ¥757,006 million on December 31, 2006, and ¥824,825 million on December 31, 2007. Present journal entries to account for all changes in the Inventories and Accounts Payable accounts during 2007. Fujitsu applies Japanese accounting standards, and reports its results in millions of yen (¥). In answering this question, assume that Fujitsu uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...