Nash Company, a manufacturer of electrical components, provided the following information from its accounting records for the year ended December 31, 2017.
Inventory at December 31, 2017 (based on physical count of goods in Nash's plant, at cost, on December 31, 2017) Accounts payable at December 31, 2017 Net sales (sales less sales returns) $2,566,000 1,984,000 18,079,000 Additional information is as follows. 1. 2. 3. 4. 5. Goods received from a vendor on December 29, 2017, were included in the physical count. However, the related $21,800 vendor invoice was not included in accounts payable at December 31, 2017, because the accounts payable copy of the receiving report was lost. Included in the physical count were components billed to a customer f.o.b. shipping point on December 30, 2017. These components had a cost of $26,300 and were billed at $34,300. The shipment was on Nash's loading dock waiting to be picked up by the common carrier. Goods, with an invoice cost of $27,300, received from a vendor at 6:00p.m. on December 31, 2017, were recorded on a receiving report dated January 2, 2018. The goods were not included in the physical count, but the invoice was included in accounts payable at December 31, 2017 Work in process inventory costing $43,300 was sent to an outside processor for plating on December 28, 2017. Components returned by customers and held pending inspection in the returned goods area on December 31, 2017, were not included in the physical count. On January 5, 2018, the components costing $21,300 were inspected and returned to inventory. Credit memos totaling $36,300 were issued to the customers on the same date. Goods were in transit from a vendor to Nash on December 31, 2017. The invoice cost was $45,500, and the goods were shipped f.o.b. shipping point on December 26, 2017 Components shipped to a customer f.o.b. destination on December 29, 2017, were in transit at December 31, 2017, and had a cost of $15,900. Upon notification of receipt by the customer on January 3, 2018, Nash issued a sales invoice for $23,300. On January 3, 2018, a monthly freight bill in the amount of $15,300 was received. The bill specifically related to merchandise purchased in December 2017, one-third of which was still in the inventory at December 31, 2017. The freight charges were not included in either the inventory or in accounts payable at December 31, 2017. 6. 7. 8. Prepare a schedule of adjustments as of December 31, 2017, to the initial amounts per Nash's accounting records by showing separately the effect, if any, of each of the eight transactions on the December 31, 2017, amounts. (If an amount reduces the account balance then enter either with a negative sign preceding the number, e.g.-15,000 or in parenthesis, eg. (15,000).) NASH COMPANY Schedule of Adjustments December 31, 2017 Inventory Accounts Payable $2,566,000 $1,984,000 Net Sales $18,079,000 Initial amounts Adjustments: 1. 2. 3. 4. 5. 6. 7. 8. Total adjustments Adjusted amounts $ HA
