Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The accounts payable balance of Jek Company at December 31, 2019 was P590,000 before the year-end adjustments relating to the following information: Upon receipt of
The accounts payable balance of Jek Company at December 31, 2019 was P590,000 before the year-end adjustments relating to the following information:
- Upon receipt of the invoice on December 31, 2019 for goods costing P30,000, the accounting staff of Jek Company recorded the purchase in the accounts. It was determined that the goods were shipped FOB destination on December 27, 2019 and were received by Jek Company on January 2, 2020.
- Goods with an invoice cost of P25,000 which were shipped FOB shipping point in December 23, 2019 from a vendor to Jek Company were lost in transit. On January 4, 2020, Jek Company filed a P25,000 claim against the transportation company.
- Goods costing P9,000 were shipped FOB shipping point from a vendor to Jek Company. Because the vendors invoice and the goods were received on January 3, 2020, the accounting staff did not include the goods in its December 31, 2019 inventory nor was the purchase recorded in the accounts in 2019.
What should Jek Company report as accounts payable in its December 31, 2019 statement of financial position?
Group of answer choices
594,000
585,000
569,000
590,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started