Lyle, Inc. is preparing its financial statements for the year
ended December 31, year 2. Accounts payable amounted to
$360,000 before any necessary year-end adjustment related to
• At December 31, year 2, Lyle has a $50,000 debit balance
in its accounts payable to Ross, a supplier, resulting
from a $50,000 advance payment for goods to be manufactured
to Lyle’s specifications.
• Checks in the amount of $100,000 were written to vendors
and recorded on December 29, year 2. The checks
were mailed on January 5, year 3.
What amount should Lyle report as accounts payable in its December
31, year 2 balance sheet?