The unadjusted trial balance of Inner Shaker Co. (with trade name: Makapangalgal Laman) on December 31,...

  

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The unadjusted trial balance of Inner Shaker Co. (with trade name: Makapangalgal Laman) on December 31, 2019 showed the following balances: ACCOUNT DEBIT P 500,000 5,500,000 Inventory, January 1 Purchases Sales Operating Expenses 1,200,000 Inner Shaker uses the periodic inventory system in accounting for its inventory. A physical count of inventory taken in the company premises on the eve of December 31, 2019 showed a balance of P650,000. At Inner Shaker Co., sales are recorded on the date the goods are shipped while purchases are recorded upon receipt of the purchase invoice from suppliers. Year-end sales and purchases transaction are reviewed to determine the correct amount of sales and purchases. The following are year-end sales transactions: Shipping Date Delivery Date 12/28/2019 12/28/2019 12/29/2019 12/30/2019 12/31/2019 12/31/2019 01/01/2020 12/30/2019 01/02/2020 12/31/2019 01/02/2020 01/01/2020 12/30/2019 12/30/2019 12/31/2019 01/01/2020 The following are year-end purchase transactions: Date Recorded Shipping Date Delivery Date 12/29/2019 12/29/2019 12/30/2019 12/31/2019 Term FOB Destination Consignment Shipping Point FOB Destination FAS Ex-ship CREDIT 01/01/2020 01/02/2020 01/01/2020 01/02/2020 P7,000,000 Cost P 100,000 400,000 160,000 120,000 300,000 180,000 Term Shipping Point FOB Destination Ex-ship FAS Selling Price P 150.000 600,000 240,000 180.000 450.000 270,000 Purchase Price P 250,000 300,000 400,000 320,000 Additional Information No. 1 No. 2 No. 3 Additional Information No. 4 No. 5 Additional Information: 1. The consigned goods were recorded as sales. P30,000 freight cost was incurred in shipping the goods to consignee which was recorded as operating expense. 2. As of 5:00PM on December 31, 2019, the goods were on the dock waiting to be picked up by the common carrier. The common carrier took possession of the goods at 12:05AM on January 1, 2020. 3. The goods were loaded into the common carrier at 11:00AM of December 31, 2019 and were unloaded on the dock of destination port at 11:00PM on December 31, 2019. 4. The goods were unloaded on the dock of the destination port at 11:30PM on December 31, 2019. P40,000 freight cost related to the purchase was paid recorded on January 1, 2020. 5. The common carrier took possession of the goods at 8:00PM on December 31, 2019. P35,000 freight cost related to the purchase was paid and recorded on January 2, 2020. 6. Aside from the freight charges already mentioned, P180,000 freight charges for outbound shipments and P200,000 freight charges for inbound shipments were paid and recorded as operating expenses. 7. 20% of all applicable freight charges is still considered inventoriable cost on December 31, 2019 8. All sales and purchases are on account. REQUIRED: Do not include any decimals for the amounts of your entries. Be mindful of extra characters or lack thereof in your answers. (2 pts each) C1. Give the adjusting entry for additional information no.1 to adjust ending inventory. C2. Give the adjusting entry for additional information no.1 to adjust operating expenses. C3. Give the adjusting entry for additional information no.1 to adjust sales. C4. Give the adjusting entry for additional information no. 2 to adjust ending inventory. C5. Give the adjusting entry for additional information no. 2 to adjust sales. C6. Give the adjusting entry for additional information no. 4 to adjust ending inventory. C7. Give the adjusting entry for additional information no. 4 to adjust freight cost. C8. Give the adjusting entry for additional information no. 5 to adjust ending inventory. C9. Give the adjusting entry for additional information no. 5 to adjust purchases. C10. Give the adjusting entry for additional information no. 5 to adjust freight cost. Note: Items C1 to C10 are not all of the necessary adjusting entries for the problem. There are some adjusting entries which were not required to be provided from C1 to C10, but are still necessary in your analysis to answer C11 to C21. C11 to C21. Supply the missing figures in the following income statement for the year 2019: [C11] Sales Less: Cost of Goods Sold Inventory, January 1 Add: Purchases Freight In Total Cost of Goods Delivered Total Goods Available for Sale Less: Inventory, December 31 Gross Profit Less: Operating Expenses Net Income [C13] [C14] [C12] [C15] [C16] [C17] [C18] [C19] [C201 [C21] The unadjusted trial balance of Inner Shaker Co. (with trade name: Makapangalgal Laman) on December 31, 2019 showed the following balances: ACCOUNT DEBIT P 500,000 5,500,000 Inventory, January 1 Purchases Sales Operating Expenses 1,200,000 Inner Shaker uses the periodic inventory system in accounting for its inventory. A physical count of inventory taken in the company premises on the eve of December 31, 2019 showed a balance of P650,000. At Inner Shaker Co., sales are recorded on the date the goods are shipped while purchases are recorded upon receipt of the purchase invoice from suppliers. Year-end sales and purchases transaction are reviewed to determine the correct amount of sales and purchases. The following are year-end sales transactions: Shipping Date Delivery Date 12/28/2019 12/28/2019 12/29/2019 12/30/2019 12/31/2019 12/31/2019 01/01/2020 12/30/2019 01/02/2020 12/31/2019 01/02/2020 01/01/2020 12/30/2019 12/30/2019 12/31/2019 01/01/2020 The following are year-end purchase transactions: Date Recorded Shipping Date Delivery Date 12/29/2019 12/29/2019 12/30/2019 12/31/2019 Term FOB Destination Consignment Shipping Point FOB Destination FAS Ex-ship CREDIT 01/01/2020 01/02/2020 01/01/2020 01/02/2020 P7,000,000 Cost P 100,000 400,000 160,000 120,000 300,000 180,000 Term Shipping Point FOB Destination Ex-ship FAS Selling Price P 150.000 600,000 240,000 180.000 450.000 270,000 Purchase Price P 250,000 300,000 400,000 320,000 Additional Information No. 1 No. 2 No. 3 Additional Information No. 4 No. 5 Additional Information: 1. The consigned goods were recorded as sales. P30,000 freight cost was incurred in shipping the goods to consignee which was recorded as operating expense. 2. As of 5:00PM on December 31, 2019, the goods were on the dock waiting to be picked up by the common carrier. The common carrier took possession of the goods at 12:05AM on January 1, 2020. 3. The goods were loaded into the common carrier at 11:00AM of December 31, 2019 and were unloaded on the dock of destination port at 11:00PM on December 31, 2019. 4. The goods were unloaded on the dock of the destination port at 11:30PM on December 31, 2019. P40,000 freight cost related to the purchase was paid recorded on January 1, 2020. 5. The common carrier took possession of the goods at 8:00PM on December 31, 2019. P35,000 freight cost related to the purchase was paid and recorded on January 2, 2020. 6. Aside from the freight charges already mentioned, P180,000 freight charges for outbound shipments and P200,000 freight charges for inbound shipments were paid and recorded as operating expenses. 7. 20% of all applicable freight charges is still considered inventoriable cost on December 31, 2019 8. All sales and purchases are on account. REQUIRED: Do not include any decimals for the amounts of your entries. Be mindful of extra characters or lack thereof in your answers. (2 pts each) C1. Give the adjusting entry for additional information no.1 to adjust ending inventory. C2. Give the adjusting entry for additional information no.1 to adjust operating expenses. C3. Give the adjusting entry for additional information no.1 to adjust sales. C4. Give the adjusting entry for additional information no. 2 to adjust ending inventory. C5. Give the adjusting entry for additional information no. 2 to adjust sales. C6. Give the adjusting entry for additional information no. 4 to adjust ending inventory. C7. Give the adjusting entry for additional information no. 4 to adjust freight cost. C8. Give the adjusting entry for additional information no. 5 to adjust ending inventory. C9. Give the adjusting entry for additional information no. 5 to adjust purchases. C10. Give the adjusting entry for additional information no. 5 to adjust freight cost. Note: Items C1 to C10 are not all of the necessary adjusting entries for the problem. There are some adjusting entries which were not required to be provided from C1 to C10, but are still necessary in your analysis to answer C11 to C21. C11 to C21. Supply the missing figures in the following income statement for the year 2019: [C11] Sales Less: Cost of Goods Sold Inventory, January 1 Add: Purchases Freight In Total Cost of Goods Delivered Total Goods Available for Sale Less: Inventory, December 31 Gross Profit Less: Operating Expenses Net Income [C13] [C14] [C12] [C15] [C16] [C17] [C18] [C19] [C201 [C21]

Answer rating: 100% (QA)

bJ Freight All To Cash Bank wrong Entry Consignment To Sale a b Solution Correct Entry CC2C... View the full answer