Prepare adjustments for the following transactions which occurred during the last days of the Myrene Company's year
Fantastic news! We've Found the answer you've been seeking!
Question:
Prepare adjustments for the following transactions which occurred during the last days of the Myrene Company's year end December 31, 2012, and in the first few days after that date:
- An invoice for P60,000, FOB shipping point, was received and recorded on January 4, 2013. The invoice shows that the goods had been shipped on December 28 and the receiving report indicates that the goods had been received on January 4. The merchandise was excluded from inventory.
- An invoice for P90,000, FOB destination, was received and recorded on January 9, 2013. The invoice shows that the goods had been shipped on December 27 and the receiving report indicates that the goods had been received on January 9. The merchandise was excluded from inventory.
- An invoice for P80,000, FOB destination, was received and recorded on January 6, 2013. The invoice shows that the goods had been shipped on December 29 and the receiving report indicates that the goods had been received on January 6. The merchandise was included from inventory.
- An invoice for P40,000, FOB shipping point, was received and recorded on January 3, 2013. The invoice shows that the goods had been shipped on December 25 and the receiving report indicates that the goods had been received on January 3. The merchandise was included from inventory.
State whether the merchandise should be included in the inventory on December 31, 2012.
Merchandise was received on January 7, 2013, and the related purchase invoice recorded on January 4, 2013. The invoice showed the shipment was made on December 28, 2012, FOB destination.
- Merchandise was received on January 7, 2013, and the related purchase invoice recorded on January 4, 2013. The invoice showed the shipment was made on December 28, 2012, FOB destination.
- Merchandise was received on January 10, 2013, and the related purchase invoice recorded on January 7, 2013. The invoice showed the shipment was made on December 31, 2012, FOB shipping point.
- Goods sold, FOB destination, invoiced for P18,500 which includes P1,000 freight charge to deliver the goods. Goods are in transit. The entity's selling price is 140% of cost.
- Goods out on consignment, sales price P50,000, freight cost P5,000.
- Goods held on consignment at a sales price of P56,000, including sales commission of 20% of the sales price.
- Goods sold under terms FOB shipping point The invoice price amounted to P37,000 which includes P2,000 freight charge. The goods were already shipped on Dec. 30 but in transit as at the end of the year.
- Finished goods in hands of consignees including 40% profit on sales, P800,000.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: