Reference no: EM132778088
Eddy Herrera is the proprietor of a small variety store in Daraga. He does not keep adequate records for his business. He wants you to prepare for him a statement of assets and liabilities. You were able to gather the following given data:
1. Cash balance as of November 30, per bank statement P30,790
2. Outstanding checks as of November 30, ascertained from the checkbook:
Check No.
K-971 1,200
K-978 1,450
K-980 1,700
K-992 11,800
3. Appraised value of the furniture and fixtures as of November 30 92,000
4. Receivables as of November 30, as per the billing files 79,000
5. Payables as of November 30, per monthly creditors' statements 18,900
6. Merchandise inventory, per physical count made on December 10, at cost 36,400
7. On December 04, a credit memorandum was received for return goods to Supplier D. These goods were originally received on November 26 but were returned on November 29 1,200
8. On December 9, an allowance due to error in pricing was granted on goods sold to Customer N on November 24 900
9. The following sales on account were made from December 01 to 10:
Sold to Cost Delivery date Selling price
R 940 4-Dec-20 1,400
J 1,780 7-Dec-20 2,500
M 1,800 12-Dec-20 3,200
10. Bank deposit slips from December 01 to 10 show the following:
December 01, collections on account 4,000
December 02, cash sales (cost P6,340) 8,600
December 07, cash sales (cost P260) 500
December 09, collections on account 3,000
December 10, collections on account 6,000
In practice of Herrera to deposit all cash received in the bank on the next banking day.
Requirement:
Problem 1: Prepare Statement of asset and liabilities for Herrera General Merchandise Store as of November 30, 2020.