Black Corporation’s accounts payable at December 31, 2018, totaled P 900,000.00 before any necessary year-end adjustments relating to the following transactions; On December 27, 2018, Black wrote and recorded checks totaling P 400,000.00 causing an overdraft of P100,000.00 in Black’s bank account at December 31, 2018. The checks were mailed out on January 10, 2019. On December 28, 2018, Black purchased and received goods for P 153,061.00, terms 2/10, n/30. Black records purchases and payable at net amounts. The invoice was recorded
Black Corporation’s accounts payable at December 31, 2018, totaled P 900,000.00 before any necessary year-end adjustments relating to the following transactions; On December 27, 2018, Black wrote and recorded checks totaling P 400,000.00 causing an overdraft of P100,000.00 in Black’s bank account at December 31, 2018. The checks were mailed out on January 10, 2019. On December 28, 2018, Black purchased and received goods for P 153,061.00, terms 2/10, n/30. Black records purchases and payable at net amounts. The invoice was recorded
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Black Corporation’s accounts payable at December 31, 2018, totaled P 900,000.00 before any necessary year-end adjustments relating to the following transactions;
On December 27, 2018, Black wrote and recorded checks totaling P 400,000.00 causing an overdraft of P100,000.00 in Black’s bank account at December 31, 2018. The checks were mailed out on January 10, 2019.
On December 28, 2018, Black purchased and received goods for P 153,061.00, terms 2/10, n/30. Black records purchases and payable at net amounts. The invoice was recorded and paid January 03, 2019.
Goods shipped FOB destination on December 20, 2018 from vendor to Black were received January 02, 2019. The invoice cost was P 65,000.00
At December 31, 2018, what amount should Black report as total accounts payable?
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