Ending Accounts Accounts Net

Inventory Payable Net Sales Receivable Purchases Net Income

Unadjusted Bal. 2,000,000 800,000 6,000,000 900,000 2,800,000 900,000

1.) 50,000 50,000

2.) (75,000) (75,000) 75,000

3.) 30,000 30,000 30,000 -

4.) (90,000) (90,000) 90,000

5.) 140,000 140,000 (140,000)

6.)

7.) (160,000) (160,000) (160,000)

100,000 100,000

8.) (90,000) (90,000)

9.) 4,000 4,000 . . 4,000 -

Adjusted Bal 5,750,000 2,809,000
2,184,000 809,000 740,000 825,000
1.) Inventory 50,000 6.) No adjusting entry
Income
Summary 50,000
7.) Sales 160,000

2.) Accounts Payable 75,000 Accounts Receivable 160,000

Purchases 75,000
Inventory 100,000
Income
3.) Purchases 30,000 Summary 100,000
Accounts
Payable 30,000
8.) Sales 90,000
Advances from
Inventory 30,000 Customers 90,000
Income
Summary 30,000
9.) Freight In 4,000
Accounts
4.) Accounts Payable 90,000 Payable 4,000

Purchase returns and allowances 90,000

Inventory 4,000
Income
5.) Purchases 140,000 Summary 4,000
Accounts
Payable 140,000
The following transactions occured during the last few days of the7.)Christy
Merchandise sold to a customer costing P100,000 was
Co's calendar year, which ends December 31, 2016, and in the first fewshipped on December 29, 2016. The customer was billed at
days after that date. P160,000 on December 29, 2016. The sales invoice shows
1.) An invoice for P50,000, FOB shipping point, was received and shipment was made FOB destination.
recorded on December 27. The shipment was received in 8.) An item costing P45,000 was sold and delivered to the
satisfactory condition on January 2. The merchandise was not customer on December 29, 2016. The goods were included in
included in the inventory. the inventory because the sales was with a repurchase
2.) An invoice for P75,000, FOB destination, was received and recorded agreement that required the company to buy back the
on December 28. The shipment was received in satisfactory inventory on January 15, 2017. The same was recorded as
condition on January 3. The merchandise was not included in the cash sale at P90,000.
inventory. 9.) A quarterly freight bill in the amount of P4,000 specifically
3.) An invoice for P30,000, FOB shipping point, was received and relating to merchandise purchases in December 2016, all of
recorded on January 4. The invoice shows that the goods had been which was still in the inventory at December 31, 2016, was
shipped on December 28 and the receiving report indicates that the received on January 3, 2017. The freight bill was not included
goods had been received on January 4. The merchandise was in either the inventory or in accounts payable at December
excluded from inventory. 31, 2016.
4.) An invoice for P90,000, FOB shipping point, was received andInspection of the client's records revealed the following December
recorded on December 15. The receiving report indicates that 31,the
2016 balances: Inventory, P2,000,000; Accounst receivable,
goods were received on December 18 but across the face of P900,000;
the Accounts payable; P800,000; Net Sales, P6,000,000; Net
report is the notation "Merchandise not of the same quality as
purchases, P2,800,000; Net income, P900,000.
ordered. Returned for credit, December 19". The merchandise Required:
was Based on the above information, determine the
excluded in the inventory. adjusted balances of the following as of December 31, 2016:
5.) An invoice for P140,000, FOB destination, was received and recorded
1.) Inventory
on January 4. The receiving report indicates that the goods were
2.) Accounts Payable
received on December 29. The merchandise was included in 3.) Net Purchases
inventory. 4.) Accounts Receivable
6.) Merchandise costing P20,000 was received on January 8, and5.) the Net Sales
related purchase invoice was recorded on January 5. The invoice
6.) Net income
shows the shipment was made on December 29, 2016, FOB
destination.