Question
Accounts Payable On December 31, 2020, the company has an Accounts Payable balance of P1,200,000 before possible adjustments for the following: (a) The December Cash
| Accounts Payable | ||||||||
| On December 31, 2020, the company has an Accounts Payable balance of P1,200,000 before possible adjustments for the following: | ||||||||
| (a) The December Cash Disbursements Journal of the company showed the following postings for payment of purchases of goods for sale: | ||||||||
| Date | Check # | Particulars | Amount | Status | ||||
| 1/12/20 | 7891 | Ambient Company | 100,000 | released and cleared | ||||
| 5/12/20 | 7895 | Smart Citizen Inc. | 120,000 | released and cleared | ||||
| 7/12/20 | 7897 | Zephyr Industries | 80,000 | unclaimed | ||||
| 8/12/20 | 7901 | Rotronics | 50,000 | released and cleared | ||||
| 10/12/20 | 7910 | Aeroqual | 20,000 | released and cleared | ||||
| 12/12/20 | 7911 | SGS | 70,000 | not yet released | ||||
| 12/18/20 | 7915 | Ambient Company | 30,000 | released and cleared | ||||
| 12/21/20 | 7917 | E1 Pro | 160,000 | outstanding | ||||
| 12/23/20 | 7920 | Smart Citizen Inc. | 90,000 | for delivery | ||||
| 12/26/20 | 7926 | Rotronics | 50,000 | outstanding | ||||
| 12/28/20 | 7928 | Ambient Company | 75,000 | for pick-up | ||||
| 12/29/20 | 7930 | IAQ | 25,000 | released and cleared | ||||
| Total | 870,000 | |||||||
| The total amount of P870,000 was posted as a debit to Accounts Payable in the General Ledger. | ||||||||
| (b) On December 27, 2020, AQ Pro, a vendor, authorized the company to return for full credit goods shipped and billed at P105,000 on December 16, 2020. The company shipped the returned goods on December 31, 2020 but the credit memo was received and recorded on January 5, 2021. | ||||||||
| (c ) Goods in transit from a vendor to the company on December 31, 2020 with an invoice cost of P45,000 purchased FOB shipping point was not yet recorded. | ||||||||
| (d) Goods shipped FOB shipping point from a vendor to the company was lost in transit. The invoice cost of P55,000 was not yet recorded. | ||||||||
| (e ) Goods shipped FOB shipping point from a vendor to the company on December 31, 2020 amounting to P27,000 was recorded and included in the year-end physical count as "goods in transit". | ||||||||
| (f ) Goods in transit from a vendor to the company on December 31, 2020 with an invoice cost of P132,000 purchased FOB destination was not yet recorded. The goods were received on January 3, 2021. | ||||||||
| (g) Goods with an invoice cost of P78,000 was recorded and included in the year-end physical count as "goods in transit". It was found out that the goods were shipped from a vendor under FOB Destination. Question: Correct Balance of Accounts Payable - 12/31/2020 is__________ | ||||||||
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Payroll Accounting 2021
Authors: Bernard J. Bieg, Judith A. Toland
31st Edition
0357358287, 9780357358283
