In the course of your examination of the inventory cut-off, both at the beginning and end of the year, you discovered the following facts: BEGINNING OF THE YEAR: 1. Invoices totalling P 3,640 were entered in the voucher register in January, but the goods were received during December. 2. December invoices totalling P 7,960 were enetered in the voucher register in December, but goods were not received until January. END OF THE YEAR 3. Sales of P 5,640 (Cost P 4,230) were made on account on December 31 and the goods delivered at that time, but all entries relating to the sales were made on January 2. 4. Invoices totalling P 5,910 were entered in the voucher register in January, but the goods were received until December. 5. December invoice totalling P 4,210 were entered in the voucher register in January, but the goods were not received until January. 6. Invoices totalling P 12,150 were entered in the voucher register in January, and the goods were received in January, but the invoices were dated December. Make corrections of prior years' income through the Retained Earnings Account, and give the adjusting entries, to be made in your work papers, assuming the company is on a periodic inventory basis.

In the course of your examination of the inventory cut-off, both at the beginning and end of the year, you discovered the following facts: BEGINNING OF THE YEAR: 1. Invoices totalling P 3,640 were entered in the voucher register in January, but the goods were received during December. 2. December invoices totalling P 7,960 were enetered in the voucher register in December, but goods were not received until January. END OF THE YEAR 3. Sales of P 5,640 (Cost P 4,230) were made on account on December 31 and the goods delivered at that time, but all entries relating to the sales were made on January 2. 4. Invoices totalling P 5,910 were entered in the voucher register in January, but the goods were received until December. 5. December invoice totalling P 4,210 were entered in the voucher register in January, but the goods were not received until January. 6. Invoices totalling P 12,150 were entered in the voucher register in January, and the goods were received in January, but the invoices were dated December. Make corrections of prior years' income through the Retained Earnings Account, and give the adjusting entries, to be made in your work papers, assuming the company is on a periodic inventory basis.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 15P: (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and...

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( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.
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