Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2013, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell's unadjusted trial balance also showed the following account balances: Purchases, $620,000; Accounts payable; $210,000; Accounts receivable, $225,000; Sales revenue, $840,000.
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The internal audit department discovered the following items:
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| 1. |
Goods valued at $32,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase.
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| 2. |
Purchases from Xavier Corporation were incorrectly recorded at $41,000 instead of the correct amount of $14,000. The correct amount was included in the ending inventory.
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| 3. |
Goods that cost $25,000 were shipped from a vendor on December 28, 2013, terms f.o.b. destination. The merchandise arrived on January 3, 2014. The purchase and related accounts payable were recorded in 2013.
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| 4. |
One inventory item was incorrectly included in ending inventory as 100 units, instead of the correct amount of 1,000 units. This item cost $40 per unit.
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| 5. |
The 2012 balance sheet reported inventory of $352,000. The internal auditors discovered that a mathematical error caused this inventory to be understated by $62,000. This amount is considered to be material.
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| 6. |
Goods shipped to a customer f.o.b. destination on December 25, 2013, were received by the customer on January 4, 2014. The sales price was $40,000 and the merchandise cost $22,000. The sale and corresponding accounts receivable were recorded in 2013.
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| 7. |
Goods shipped from a vendor f.o.b. shipping point on December 27, 2013, were received on January 3, 2014. The merchandise cost $18,000. The purchase was not recorded until 2014.
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| Required: |
| 1. |
Determine the correct amounts for 2013 ending inventory, purchases, accounts payable, sales revenue, and accounts receivable.
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