Q2. PLEASE GIVE THE SOLUTIONS: Question No. 2STUVWXYZ Trading Company sells luxury items to global entertainment personalities. In your audit ofthe company, following information was obtained from the company's accounting records for the yearended December 31, 2022.Inventory at December 31, 2022 (based on physical countin STUVWXYZ's warehouse at cost on December 31, 2022)Accounts Payable1,329,000980,0003,742,000Net SalesA. Iron Materials costing P50,000 and billed on December 30 at a selling price of P64,000 had beensegregated in the warehouse for inventory as a signed purchase order had been received fromRobert Downey, Jr. Terms, FOB destination.B. Sales out on consignment to Chris Evans amounting to P68,000 was recorded as sales onDecember 31 even though the goods have been sold in early 2023. The cost of the goodsamounted to P34,000 was not included in the count.C. Goods held on consignment from Chris Hemsworth, consignor, amounting to P118,000 wereincluded in the physical count of goods in STUVWXYZ's warehouse on December 31 2022, and inaccounts payable at December 31, 2022.D. Pashmina shawls sold to Scarlett Johansson on COD, costing P10,000, was shipped December29, 2022. Sales was recorded upon shipment. The goods were received and paid by Ms.Jahansson January 3, 2023 for P28,000 at that time.E. An invoice for P75,000 was shipped FOB shipping point from Jeremy Renner was received andrecorded on December 31, 2022. The invoice shows the goods had been shipped on December28, 2022 and the receiving report indicated the goods had been received by STUVWXYZ onDecember 31, 2022 and recorded at selling price of P95,000.F.A luxury pool and snooker table costing P150,000 was sold on an installment basis on December10, 2022. It was delivered to Paul Rudd on that date. The luxury table was included in inventorybecause STUVWXYZ still holds legal title. Per company's experience, all installment sales werefully settled.G. Prada sunglass sold to Brie Larson for P250,000 and costing P200,000 was recorded but still onhand and included in the inventory at year end. The Ms. Larson requested STUVWXYZ to holdphysically the item pending completion of her dress to suit the sunglass. STUVWXYZ agreed toMs. Larson's request and does not intend to resell the sunglass.H. Consigned goods to Karen Gillan, consignee, (costing P72,000) in December, 2022, priced atP86,500, was purchased by Ms. Gillan herself. The sale is unrecorded at year-end, 2022 pendingreceipt of the sale advice from Ms. Gillan.1. Included in the inventory of physical count were goods received from Jon Favreau, vendor, onDecember 27, 2022. However, the related invoice for P77,000 was not recorded because thecopy of the receiving report for the accounting department was lost.J.In transit to customer Bradley Cooper on December 31, 2022 were perfumeries costing P91,000shipped FOB shipping point on December 26, 2022. A sales invoice for P112,500 was issued andrecorded on January 3, 2023 when STUVWXYZ was notified by Mr. Cooper that the items hadbeen received.Required: Determine the adjusted balances of the following as of December 31, 20221. Inventory2. Net Sales3. Accounts Payable

Inventory at 31 December,22 1329000 A. already Sold goods -50000 B. Sales on consignment basis…

Answered: Required: Determine the adjusted…

Required: Determine the adjusted balances of the following as of December 31, 2022 1. Inventory 2. Net Sales 3. Accounts Payable

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...

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