3. On December 31, 2020, Norway Company has a balance of P1,600,000 in its inventory account...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3. On December 31, 2020, Norway Company has a balance of P1,600,000 in its inventory account determined through physical count and a balance of P1,000,000 in its accounts payable account. The balances were determined before any necessary adjustment for the following: a. Merchandise costing P100,000, shipped FOB shipping point from a vendor on December 30, 2020, was received and recorded on January 5, 2021. b. A package containing a product costing P500,000 was standing in the shipping area when the physical inventory was conducted. This was not included in the inventory because it was marked "Hold for shipping instructions." The sale order was dated December 17, 2020 but the package was actually shipped and customer billed on January 3, 2021. c. Goods in the shipping area were included in inventory because shipment was not made until January 4, 2021. The goods, billed to the customer FOB shipping point on December 30, 2020, had a cost of P200,000. d. Goods shipped FOB destination on December 27, 2020 from a vendor were received on January 6, 2021. The invoice cost of P300,000 was recorded on December 31, 2020 and this was included in the count as "goods in transit". Determine the adjusted balance of inventory as of December 31, 2020. 3. On December 31, 2020, Norway Company has a balance of P1,600,000 in its inventory account determined through physical count and a balance of P1,000,000 in its accounts payable account. The balances were determined before any necessary adjustment for the following: a. Merchandise costing P100,000, shipped FOB shipping point from a vendor on December 30, 2020, was received and recorded on January 5, 2021. b. A package containing a product costing P500,000 was standing in the shipping area when the physical inventory was conducted. This was not included in the inventory because it was marked "Hold for shipping instructions." The sale order was dated December 17, 2020 but the package was actually shipped and customer billed on January 3, 2021. c. Goods in the shipping area were included in inventory because shipment was not made until January 4, 2021. The goods, billed to the customer FOB shipping point on December 30, 2020, had a cost of P200,000. d. Goods shipped FOB destination on December 27, 2020 from a vendor were received on January 6, 2021. The invoice cost of P300,000 was recorded on December 31, 2020 and this was included in the count as "goods in transit". Determine the adjusted balance of inventory as of December 31, 2020.
Expert Answer:
Answer rating: 100% (QA)
To determine the adjusted balance of inventory as of December 31 2020 we need to take into account t... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
Problem 21.02 Cullumber Corporation's recent sale to a firm in Mexico produced revenues of 14,740,000 Mexican pesos (MPs). If the firm sold the pesos to its bank and was credited with $1,282,380.00,...
-
On December 31, 2021, ABC Co. has a balance of 240,000 in its inventory account determined through physical count and a balance of 90,000 in its accounts payable account. The balances were determined...
-
On January 1, 20x1, DOLEFUL SAD Co. took a 3-year, 4,000,000 loan from a bank. The loan agreement requires DOLEFUL to maintain a current ratio of 2:1. If the current ratio falls below 2:1, the loan...
-
Match the accounting terminology to the definitions. 1. Sarbanes-Oxley Act 2. Internal control 3. Encryption 4. Separation of duties 5. Internal auditors
-
Ascorbic acid (vitamin C, C6H8O6) is a water-soluble vitamin.
-
Calculating Costs of Issuing Stock Zimba Technology Corp. recently went public with an initial public offering of 2.5 million shares of stock. The underwriter used a firm commitment offering in which...
-
Public corporations are required not only to communicate with their stockholders by means of an annual report but also to submit an annual report to the Securities and Exchange Commission (SEC). The...
-
Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, 2016: Administrative salaries...
-
The graphs of the function F (left, in blue) and G (right, in red) are below. F(x) Let P(x) = F(x)G(x) and Q(x) = G(x) Calculate the following derivatives. -1 (a). P' (6) = (b). Q'(1) = 1
-
With petroleum losing its luster, to what extent can/should Atlantic Canada depend on changing their fishing industry from cod to shrimp, crab, and lobster and tourism to improve the region's...
-
.8. (10pts) Let f(x) = 4x2-3x-9. Use the limit definition of derivative to find a formula for f'(x). Present your solution in an organized fashion. Note: a final answer found without using the limit...
-
TASK PERFORMANCE Instructions: Determine the requirements for each of the independent cases. Show your computations (20 items x 5 points) Case 1 LOVE INC. purchased machinery on January 1, 201A, at...
-
As stated in a class handout on the strategy of competition and cooperation that is posted in Module 9: "Economists have a simple view of cooperation and conflict: People tend to cooperate when they...
-
Find the sum. (4 + 2) k = 1
-
Separate variables in the following partial differential equation for u(x, t): DE for X(x): DE for T(t): = 0 = 0 (Simplify your answers so that the highest derivative in each equation is positive.) t...
-
Overview With the rise of technological advances in communication, it is now easier than ever to interact with someone on the other side of the world in a matter of seconds. For organizations looking...
-
At December 31, 2021, Highland Inc. reported $ 909,000 in accounts receivable and $ 11,500 in the allowance for doubtful accounts. In 2022, the company had $ 973,000 in credit sales and collected $...
-
In each of the following independent cases, document the system using whatever technique(s) your instructor specifies. a. Dreambox Creations (www.dreamboxcreations.com/) in Diamond Bar, California,...
-
Pathgoal theory considers that leadership characteristics are modified by what factors?
-
Why did people not obey Angie initially? Angie was an exceptional catheterization laboratory technician who was respected by her teammates. When the director of the cath lab took another job, Angie...
-
How is servant leadership an extension of transformational leadership?
Study smarter with the SolutionInn App