CASE 1 - UZUMAKI COMPANY

Inventory Net Sales Accounts payable

Unadjusted balances 2,360,000 18,096,000 1,472,000
Add (less): Adjustments
a. (20,000) - (20,000)
b. 96,000 - -
c. - (85,000) -
d. (30,000) - -
e. 142,000 - 142,000
f. 48,000 - -
g. 64,000 (76,800) -
h. 40,320 - -
i. 54,000 - 54,000
j. - - 115,000
k. 6,000 - 18,000
Adjusted balances 2,760,320 17,934,200 1,781,000

Proposed adjusting entries:

a. Accounts payable 20,000

Inventory 20,000

b. Inventory 96,000
Cost of sales 96,000

c. Sales 85,000
Accounts receivables 85,000

d. Cost of sales 30,000

Inventory 30,000

e. Inventory 142,000
Accounts payable 142,000

f. Inventory 48,000
Cost of sales 48,000

g. Sales return 76,800

Accounts receivable 76,800

Inventory 64,000
Cost of sales 64,000
h. Inventory 40,320
Cost of sales 40,320

i. Inventory 54,000
Accounts payable 54,000

j. Cost of sales 115,000

Accounts payable 115,000

k. Inventory 6,000
Freight - out 12,000
Accounts payable 18,000
CASE 2 - Haruno Co.

Unadjusted balance 2,548,900

Add (less): Adjustments
b. 174,200
c. (128,000)
d. -
e. 85,400
f. -
g. (140,300)
h. (150,500)
i. 150,000
Adjusted balance 2,539,700
CASE 3 - KAKASHI Inc.

Physical Perpetual Sales AP

Unadjusted balances 880,000 900,000 - -
a. (30,000) - - -
b. 8,000 - - -
c. - - (14,000) -
d. - 12,000 - 12,000
e. - (30,000) 40,000 -
f. - (12,000) - -
Adjusted 858,000 870,000 26,000 12,000

Physical 858,000
Perpetual 870,000
Unlocated difference (12,000)
CASE 4 - MIZUKAGE Company

Inventory Purchases Accounts Pay Sales

316,876 385,346 120,000 699,860
a. 2,183 2,183
c.2 10,160 -
c.1 8,120 - -
b. (19,270)
d. 4,156 (5,195)
(1,600) (1,250)
(15,773)
Adjusted balances 337,712 386,279 122,183 659,622
Accounts rec
210,000

(19,270)
(5,195)

(15,773)
169,762
CASE 5 - OROCHIMARU Retailing

Units UC TC
Dec. 1 400 830 332,000
45 850 38,250
Dec. 2 (350)
Dec. 3 5
Dec. 7 60 910 54,600
Dec. 11 78 960 74,880
Dec. 17 (90)
Dec. 20 (1) 910 (910)
Dec. 24 (65)
Dec. 27 80 980 78,400
162 577,220

FIFO
Composition of inventory, 12/31
Date Units UC TC
Dec. 27 80 980 78,400
Dec. 11 78 960 74,880
Dec. 7 4 910 3,640
Total 162 156,920

Inventory, 12/1 370,250

Net Purchases 206,970
Total goods available for sale 577,220
Inventory, 12/31 (156,920)
Cost of sales 420,300

Moving average

Purchased COS Balance

Date Units UC TC Units UC TC Units
Dec. 1 400
45
445
Dec. 2 350 832 291,208 95
Dec. 3 (5) 832 (4,160) 100
Dec. 7 60 910 54,600 100
60
160
Dec. 11 78 960 74,880 160
 78
238
Dec. 17 90 894 80,460 148
Dec. 20 (1) 910 (910) 147
Dec. 24 65 893 58,045 82
Dec. 27 80 980 78,400 82
80
206,970 425,553 162
Balance
UC TC
830 332,000
850 38,250
832 370,250
832 79,042
832 83,202
832 83,202
910 54,600
861 137,802
861 137,802
960 74,880
894 212,682
894 132,222
893 131,312
893 73,267
893 73,267
980 78,400
936 151,667
CASE 6 - MOMOCHI Specialty Company
COMPREHENSIVE - BRAND Company

Inventory, December 31, 2015 750,000

Add purchases for the period Jan. 1 to April 21
Purchases up to March 31, 2016 520,000
Payments for April purchases 34,000
Unrecorded obligations for April purchases 106,000
Purchase returns (9,500) 650,500
Total goods available for sale 1,400,500
Less cost of sales (see computation below) 830,500
Estimated inventory on the date of fire 570,000
Less: Proceeds from sale of salvaged merchandise 35,000
Shipments in transit 23,000 58,000
Inventory fire loss 512,000

Computation of cost of sales:

Sales up to March 31, 2016 1,350,000
Sales for the period April 1 to 21
Accounts receivable, 4.21.16 360,000
Accounts receivable for write-off 80,000
Receipts from customers (P129,500 - P9,500) 120,000
Total 560,000
Less Accounts receivable, 3.31.16 400,000 160,000
Total sales 1,510,000
x cost ratio (see computation below) 0.55
Cost of sales 830,500

Computation of cost ratio:

Inventory, 1/1/13 660,000
Net purchases (2014 and 2015) 5,150,000
Inventory, 12/31/15 (750,000)
Cost of sales (2014 and 2015) 5,060,000
/ Net sales (2014 and 2015) 9,200,000
Overall cost ratio 0.55