Subject: Accounting

Answer the following with complete and detailed solution. Use excel for better understanding and find the balances needed then prepare financial position and notes to financial position

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2023. 5. During the preparation of its statement of financial position as of December 31, 2023, PASCUAL Company reported the following unadjusted amounts: Inventory Accounts receivable, net Accounts payable Unearned income Investment in equity securities - FVTPL P3,750,000 2,950,000 2,800,000 780,000 Property, plant and equipment Deferred tax asset Accrued expenses Loans payable Cash and cash equivalents Investment in debt securities FVTPL Investment in associate P900,000 1,050,000 7,600,000 2,000,000 1,900,000 6,400,000 The newly hired accountant was unsure how to account for the following items: a. The inventory is based on physical count as of December 31, 2023. Goods received on consignment amounting to P350,000 were included in the physical count and in accounts payable. In addition, inventory purchased for P250,000 under FOB shipping point terms was in transit. The Company has not yet recorded any amount related to this purchase. w 1,600,000 2,200,000 Goods purchased under FOB destination terms for P180,000 were in transit. The Company received and recorded the related invoice on December 28, 2023. b. Goods sent out on consignment were included in the accounts receivable at its total selling price of P580,000. The Company maintains 30% gross profit on sales in all of its inventory sales. Soc. Investment in equity securities - FVTPL included the cost of Company's own se shares amounting to P550,000. The shares have fair value of P665,000 as of December 31, 2023. 52 rahul d. Included in the property, plant and equipment is the carrying amount of an equipment held for sale amounting to P750,000. The equipment had a fair value less costs to sell of P660,000 on December 31, 2023. e. Checks payable to suppliers totaling P420,000 and recorded on December 30, 2023 were released only on January 5, 2024. In addition, a check payable to a supplier dated January 10, 2024 were recorded and released on December 24, 2023. f. The Company had a bank overdraft amounting to P175,000 in its one and only bank account maintained with ALPHA Bank. anda qo 2023. 5. During the preparation of its statement of financial position as of December 31, 2023, PASCUAL Company reported the following unadjusted amounts: Inventory Accounts receivable, net Accounts payable Unearned income Investment in equity securities - FVTPL P3,750,000 2,950,000 2,800,000 780,000 Property, plant and equipment Deferred tax asset Accrued expenses Loans payable Cash and cash equivalents Investment in debt securities FVTPL Investment in associate P900,000 1,050,000 7,600,000 2,000,000 1,900,000 6,400,000 The newly hired accountant was unsure how to account for the following items: a. The inventory is based on physical count as of December 31, 2023. Goods received on consignment amounting to P350,000 were included in the physical count and in accounts payable. In addition, inventory purchased for P250,000 under FOB shipping point terms was in transit. The Company has not yet recorded any amount related to this purchase. w 1,600,000 2,200,000 Goods purchased under FOB destination terms for P180,000 were in transit. The Company received and recorded the related invoice on December 28, 2023. b. Goods sent out on consignment were included in the accounts receivable at its total selling price of P580,000. The Company maintains 30% gross profit on sales in all of its inventory sales. Soc. Investment in equity securities - FVTPL included the cost of Company's own se shares amounting to P550,000. The shares have fair value of P665,000 as of December 31, 2023. 52 rahul d. Included in the property, plant and equipment is the carrying amount of an equipment held for sale amounting to P750,000. The equipment had a fair value less costs to sell of P660,000 on December 31, 2023. e. Checks payable to suppliers totaling P420,000 and recorded on December 30, 2023 were released only on January 5, 2024. In addition, a check payable to a supplier dated January 10, 2024 were recorded and released on December 24, 2023. f. The Company had a bank overdraft amounting to P175,000 in its one and only bank account maintained with ALPHA Bank. anda qo

Answer rating: 100% (QA)

a Inventory Adjust for goods on consignment Subtract P350000 from inventory Adjust for FOB shipping ... View the full answer