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On may 1 the corporation borrowed p800000 from

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On may 1, the corporation borrowed P800,000 from Prudent Bank by signing a P920,000 nobearing note due one-year from May 1.Prepare any adjusting journal entries to present fair financial statements at December 31.PROBLEM 16:In conjunction with your firm’s examination of the financial statements of BATA, INC. as of Decembeyou obtained the information from the company’s voucher register sownin the work paper below.ItemNo.EntryDateVoucherReferenceDescriptionAmountAccount C112.18.1212-200Supplies, shipped FOB destination,12/15/12; received 12/17/12P 15,000Supplies o212.18.1212-203Auto insurance, 12.15.1212/15/1322,000Prepaid in312.21.1212-209Repairs services; received 12/20/1219,000Repairs &412.26.1212-212Merchandise, shipped FOB shipping point,12/20/12; received 12/24/12123,000Inventory512.21.1212-210Payroll, 12/7/12 12/21/12(12 working days)69,000Salaries an612.21.1212-234Subscription to industry magazine for 20135,000Dues & suexpens712.28.1212-236Utilities for December 201224,000Utilities ex812.28.1212-241Merchandise, shipped FOB destination,12,24,12; received 1/2/13111,500Inventory912.28.1212-242Merchandise, shipped FOB destination;12/24/12; received 1/2/1384,000Inventory101.2.131-1Legal services; received 12/28/1246,000Legal andfees exp111.2.131-2Medical services for employees for December 201225,000Medical ex121.5.131-3Merchandise, shipped FOB shipping point,12/29/12; received 1/4/1355,000Inventory131.10.131-4Payroll, 12/21/12 1/5/13 (12 workingdays in total, 4 working days inJanuary 2013)72,000Salaries an141.10.131-6Merchandise, shipped FOB shipping point,
AP - ConvictionUploaded byNor HannaDocxFull descriptionSaveEmbedRELATED TITLES2 views0SharePrinticomm'sproposedACCT 3312 - Chap17 PracticeSolutionsBFi0Cordillera Career Development CollegeCOLLEGE OF BUSINESS EDUCATION AND ADMINISTRATIONBuyagan, Poblacion, La Trinidad, BenguetAccrued payrollP48,000Accrued interest payable26,666Dividends payable160,000The accrued payroll and accrued interest payable were reversed effective January 1, 2013.Required:Review the data given above and prepare journal entries to adjust the accounts on December 31, 20that the company follows FOB terms for recording inventory purchases.PROBLEM 17:You are engaged to audit the December 31, 2012, financial statements of LIZA COMPANY, a manufachousehold appliances. Your audit disclosed the following situations.a.In June 2012, the company began producing and selling a new line of dishwasher. By the endit had sold 120,000 to various dealers for P15,000 each. The product was sold under a 1-yeaand the company estimates warranty costs to be P750 per dishwasher. Liza had paid out P30warranty expenses as of December 31, 2012, which also the amount shown as warranty expincome statement for the current year.b.In response to your letter of audit inquiry, Liza’s lawyer informed you that the company is inlawsuit for violation environmental laws regulating hazardous waste. Although the litigationLiza’s lawyer is certain t hat Liza will most probably have to pay cleanup costs and fines of P5Liza neither accrued nor disclosed this loss in the financial statements.

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Term
Spring
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1981, 1986, 1971, 1979, 1973, 1970

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