The following accounts were extracted from the unadjusted trial balance of
Silang Corp. as of December 31, 2018:
Cash
963,200
Accounts receivables
2,254,000
Merchandise inventory
6,050,000
Accounts payable
4,201,000
Accrued expenses
60,400
During your audit, you discovered that the client held its cash records open
even after year end.
Audit notes:
a. Collections for January 2019 of P654,600 were recorded in the December
2018 cash records.
The receipts of P360,100 represents cash sales with the balance
representing collections from customers who paid within the 5% cash
discount period.
b. Accounts payable of P372,400 was paid in January 2019. The payments on
which a P12,400 cash discount has been taken were included in the
December 31, 2018 check register.
c. Merchandise inventory as stated in the trial balance represented the
result of the count conducted on December 30, 2018 on inventories on
hand. The following information were found to be relevant in your audit
of inventories:
 Goods valued at P275,000 are on consignment with a customer and
were not included in the physical count
 Goods costing P217,500 were received from a vendor on January 4,
2019. The related invoice was received and recorded on January 6,
2019. These goods were shipped by the vendor on December 31, 2018
under an FOB shipping point terms.
 Goods costing P637,500 were shipped on December 31, 2018, and
were received by the customer on January 2, 2019. The terms of
the invoice were FOB shipping point. The sales of P815,000 has
been recorded in 2018.
 A shipment of goods invoiced at P182,000 to a customer on
December 29, terms FOB destination was recorded in 2019. The cost
of the related goods amounted to P130,000 and were received by
the customer on January 4, 2019.
 The invoice for goods costing P175,000 was received and recorded
as purchase on December 31, 2018. The related goods, shipped FOB
Destination were received on January 4, 2019.
 Goods valued at P612,800 are on consignment from a vendor. These
goods were excluded from the physical count.
Requirements: Based on the result of your audit, determine the following
1. Adjusted balance of Cash:
2. Adjusted balance of Accounts receivable
3. Correct Inventory ending balance.
4. Net adjustment to cost of sales.
5. Adjusted accounts payable.
6. Adjusting Journal Entries