The balance in Sky Company's Accounts Payable account at December 31, 2025 was $980,000. The following...

Transcribed Image Text:

The balance in Sky Company's Accounts Payable account at December 31, 2025 was $980,000. The following items were discovered that may or may not affect this balance. Describe and calculate what would have been the effect of each of these on the Accounts Payable balance? a) Goods were in transit to Sky from a vendor on December 31, 2025. The invoice cost was $40,000. The goods were shipped F.O.B. shipping point on December 29, 2025 and were received on January 4, 2026. b) Goods shipped F.O.B. destination on December 21, 2025 from a vendor to Sky were received on January 6, 2026. The invoice cost was $25,000. c) On December 27, 2025, Sky wrote and recorded checks to creditors totaling $30,000 that were mailed on January 10, 2026. d) In Sky's December 31, 2025 balance sheet, the Accounts Payable balance should be what amount? The balance in Sky Company's Accounts Payable account at December 31, 2025 was $980,000. The following items were discovered that may or may not affect this balance. Describe and calculate what would have been the effect of each of these on the Accounts Payable balance? a) Goods were in transit to Sky from a vendor on December 31, 2025. The invoice cost was $40,000. The goods were shipped F.O.B. shipping point on December 29, 2025 and were received on January 4, 2026. b) Goods shipped F.O.B. destination on December 21, 2025 from a vendor to Sky were received on January 6, 2026. The invoice cost was $25,000. c) On December 27, 2025, Sky wrote and recorded checks to creditors totaling $30,000 that were mailed on January 10, 2026. d) In Sky's December 31, 2025 balance sheet, the Accounts Payable balance should be what amount?

Answer rating: 100% (QA)

Lets analyze the effect of each item on the Accounts Payable balance at December 31 2025 a Goods in ... View the full answer