On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shirts.The following information was available from the entity's accounting office:Cost of Goods SoldTransportation InMerchandise Inventory, 1/1/2019P1,260,00039,600300,000Purchases Discounts26,400Purchases Returns and Allowances46,200Purchases1,320,000Required: Compute the value of the lost merchandise.

Cost of goods sold is the actual cost of goods that are being sold to the customers. It includes…

On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shirts The following information was available from the entity's accounting office: Cost of Goods Sold P1,260,000 Transportation In Merchandise Inventory, 1/1/2019 39,600 300,000 Purchases Discounts 26,400 Purchases Returns and Allowances 46,200 1,320,000 Purchases Required: Compute the value of the lost merchandise.

On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shirts The following information was available from the entity's accounting office: Cost of Goods Sold P1,260,000 Transportation In Merchandise Inventory, 1/1/2019 39,600 300,000 Purchases Discounts 26,400 Purchases Returns and Allowances 46,200 1,320,000 Purchases Required: Compute the value of the lost merchandise.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 21E: Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and...

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The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?
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On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
A retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty inventory parts. Which of the following represents the journal entry for this transaction if the retailer has already remitted payment? A. B. C.
Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and income tax purposes. At the end of 2019, the following information was obtained from the inventory records: Required: 1. Prepare the necessary adjusting journal entry assuming that Grimstad converts the accounts to LIFO at the end of 2019. 2. Indicate how Grimstad would disclose the inventory value on its comparative balance sheets prepared at the end of 2019. 3. Next Level By how much would Grimstads cost of goods sold differ in 2019 if it used FIFO for external reporting?
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a shoe retailer, for 70 each. FootAction has the right to return the shoes for any reason up to March 31, 2019, for a full refund. The cost of each pair of shoes is 32. ShoeKing predicts that it is probable that 40 pairs of the shoes will be returned. ShoeKing uses the perpetual method for inventory. Required: 1. Prepare ShoeKings journal entry on January 5, 2019, to account for this transaction. 2. Assume that FootAction returns 35 pairs of shoes on March 31, 2019. Prepare the journal entry to record this return.
On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago Shin The following information was available from the entity's accounting office: Cost of Goods Sold Transportation In Merchandise Inventory, 1/1/2020 P1,260,000 39,600 300,000 26,400 46,200 1,320,000 Purchases Discounts Purchases Returns and Allowances Purchases Required: Compute the value of the lost merchandise.
On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following information was available from the entity's accounting office: P1,260,000 39,600 Cost of Goods Sold Transportation In Merchandise Inventory, 1/1/2020 Purchases Discounts 300,000 26,400 46,200 1,320,000 Purchases Returns and Allowances Purchases Required: Compute the value of the lost merchandise.
Newman Hardware Store completed the following transactions in December 2019. It uses perpetual inventory system. It records both purchase and sales at gross amount. Purchased goods from Jerry Wholesale for $4,200 with the terms of 2/15, 1 Dec n/30. Sold goods on account to Mack Ltd at $2,100, terms 1/20, n/30. The cost of goods sold was $1,300. Returned the defective goods costing $300 purchased on 1 December to Jerry Wholesale. Paid the outstanding amount owed to Jerry Wholesale in full. Mack Ltd returned the unsatisfactory goods from the 2 December sales. The selling price was $400 and the cost of the goods was $180. Paid $200 for transportation fee, of which half is for 2 December sale and the remaining for 1 December purchase. Received collections in full, from the customers billed on 2 December. 14 15 16 21 Purchased goods from Jerry Wholesale for $8,400 with the terms of 2/15, n/30, FOB Destination Point, with goods shipped on the same day and received on 3 January 2020. Found…
Abe's Printing Supply Company uses a perpetual inventory system. The company had the following transactions during August 2019:Aug. 5: Purchased $2,900 of merchandise on account. Freight and credit terms were FOB shipping point, 3/15, n/60.Aug. 9: Paid transportation costs of $440 for the Aug. 5 purchase.Aug. 10: Returned $600 of defective merchandise that had been purchased on Aug. 5.Aug. 15: Paid for the merchandise purchased on Aug. 5.Prepare journal entries for August 10 and 15. Omit explanations.