Professional Documents
Culture Documents
–
–
entity’s cash management.
–
were not included in Sheep’s physical count of inventory because they were not
were not included in Sheep’s physical count of inventory because they were not
–
interest in Hall Company when the fair value of Hall’s net assets was P17,500,000. Hall
changes in market conditions that give rise to market risk is estimated as follows. The bond’s
–
–
–
–
–
–
–
Page of
Bird Company is a manufacturer of small tools. The following information was obtained from the
company's accounting records for the year ended December 31, 2014:
Inventory at December 31, 2014 (based on physical count in Bird's
warehouse at cost on December 31, 2014) P1,870,000
Accounts payable at December 31, 2014 1,415,000
Net sales (sales less sales returns) 9,693,400
Your audit reveals the following information:
a. The physical count included tools to be shipped to a customer FOB shipping point on
December 31, 2014. These tools cost 164,000 and were billed at P78,500 and were recorded
as December sales. They were physically segregated awaiting shipping instructions from
the customer.
b. Goods shipped FOB shipping point by a vender were in transit on December 31, 2014.
These invoices amounting to 193,000 were received in January 2015 and were recorded as
purchases upon receipt.
c. Work in process inventory costing P27,000 was sent to a job contractor for further
processing.
d. Not included in the physical count were goods returned by customers on December 31,
2014. These goods costing P49,000 were inspected and returned to inventory on January
7, 2015. Credit memos for P67,800 were issued to the customers at that date.
e. In transit to a customer on December 31, 2014, were goods costing P17.000 shipped FOB
destination on December 26, 2014. A sales Invoice for P29,400 was issued on January 3,
2015, when Bird Company was notified by a customer that the tools had been received.
f. At exactly 5:00 pm on December 31, 2014, goods costing P31,200 were received from a
vendor. These were recorded on a receiving report dated January 2, 2015. The related
Invoice was recorded on December 31, 2014, but the goods were not included in the
physical count.
g. Included in the physical count were goods received from a vendor on December 27, 2014.
However, the related Invoice or P36,000 was not recorded because the accounting
department's copy of the receiving report was lost.
h. A monthly freight bill for P16,000 was received on January 3, 2015. Tt specifically related
to merchandise bought in December 31, 2014, one-half of which was still in the inventory
at December 31, 2014. The freight was not included in either the inventory or in accounts
payable at December 31, 2014.
Based on the preceding information compute the December 31, 2014, adjusted balance of the
following:
A B C D
18. Inventory 2,031,200 2,046,200 2,078,200
19. Accounts payable 1,552,000 1,467,000 1,591,200
20. Net sales 9,614,900 9,576,500 9,625,600
–
–
–
–
–
–
–
–
–
–
–
PAS 2 par. 8 states that “inventories encompass goods purchased and
property held for resale.” As the standard entails, goods purchased and h
is commonly stored in the entity’s warehouse and physically counted at the end of the period forms
Employee’s
IOU from controller’s sister
Traveler’s check
Traveler’s check
–
PAS 1 par. 66 states that “an entity shall classify an asset as current when it is cash or a cash
months after the end of reporting period.” Cash in bank , which meets the definition, is commonly
–
P22,000; Employees’ postdated checks, P30,000; I.O.U. from president’s brother, P75,000;
Traveler’s check, P50,000; No
currency & expenses receipts for P84,000), P100,000 and Cashier’s checks, P36,000.
–
Traveler’s check
Cashier’s checks
twelve months after the end of reporting period.” Cash in bank , which meets the
SHAREHOLDER’S EQUITY
PAS 32 par 18a states that “a preference share that provides for mandatory redemption
FIFO cost or net realizable value. Cainta’s inventory control account balance at June 30,2019, was
–
What adjustment should be made to Cainta’s sales revenue for the year ended June 30,
The “unlocated difference” between the perpetual balance and the physical count amounts
–
PAS 2 par. 8 states that “inventories encompass goods purchased and
property held for resale.” As the standard entails, goods purchased and held by a retailer which
is commonly stored in the entity’s warehouse and
property held for resale.” As the standard entails, goods purchased and h
is commonly stored in the entity’s warehouse and physically counted at the end of the period forms
–
Customer’s check dated January 15, 2020
twelve months after the end of reporting period.” Cash in bank , which meets the definiti
months or the entity’s operating cycle to receive as the bank is undergoing liquidation.
–
–
–
–
–
–
–
–
–
–
–
–
–
At the beginning of the current year, Bing Company purchased 30,000 shares of Latt Company’s
–
During the current year, Bing’s officers gained a majority on Latt’s board of directors.
•
•
–
–
–
was marked “Hold for shipping instructions”. The purchase order was dated December
–
–
–
•
•
–
–
generating unit’s value in use. This does not include the carrying amount of
–
ice’s fluctuations
–
–
–
–
–
–
–
PAS 32 par 18a states that “a preference share that provides for mandatory redemption
–
December 31, and were not included in the inventory. A review of the customer’s purchase
inventory. Terms of sale are FOB shipping point according to the supplier’s invoice which
–
–