Listed in the table below are certain matters developed in the course of your tests. Certain voucher register entries are as follows: Date Mdze. F.O.B. Terms Shipped Received Invoice No. Amount December 2013 Destination 12-23-20 12-26-20 1401 P250 Shipping point 12-24-20 12-30-20 9176 310 Shipping point 12-24-20 12-31-20 0010 180 Destination 12-24-20 12-29-20 1307 550 Shipping point 12-26-20 1-2-21 6609 690 Destination 12-26-20 12-31-20 6610 420 Destination 12-26-20 1-3-21 0481 750 Shipping point 12-27-20 12-30-20 3671 290 Shipping point 1-2-21 1-4-21 6098 350 January, 2014 Destination 12-26-20 1-2-21 7611 680 Shipping point 12-27-20 12-30-20 7711 460 Destination 12-27-20 12-29-20 9001 770 Destination 12-28-20 1-2-21 8345 205 Shipping point 12-28-20 1-3-21 4678 315 Destination 12-29-20 12-31-20 7263 610 Destination 12-31-20 1-4-21 4915 375 Shipping point 1-2-21 1-5-21 5666 805 The physical inventory compilation includes P750 of merchandise received on consignment form a supplier. The company has other consigned stocks on hand which were not included in the physical inventory compilation and which cost P 5,200 if purchased. Shipments of December 31, 2020 were properly recorded of the books as sales. You computed the cost of these sales as being P1,900. Required: Prepare working papers to compute the adjusted balance at December 31, 2020 of. 1. Inventory 2. Purchases E-5: In conducting your audit of Tower Corporation, a company engaged in import and wholesale business, for the fiscal year ended June 30, 2020, you determined that its internal control system was good. Accordingly, you observed the physical inventory at an interim date, May 31, 2020 instead of at June 20, 2020. You obtained the following information from the company's general ledger: Sales for eleven months ended May 31, 2020 P 672, 000 Sales for the fiscal year ended June 30, 2020 768,000 Purchases for eleven months ended May 31, 2020 (before audit adjustments) 540,000 Purchases for the fiscal year ended June 30, 2020 640,000 Inventory, July 1, 2019 70,000 Physical Inventory, May 31, 2020 110,000
