The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing (SCC). SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC's October 31 year-end. Required: Indicate (Yes or No) whether SCC should include each item in its inventory balance at October 31. a. On November 2, SCC received goods on consignment from Apparel Corporation. b. On October 31, SCC received goods on consignment from Apparel Corporation. c. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB shipping point. d. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB destination.
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- Uptown Co. took a physical count of its inventory at year-end. In addition, it had to decide whether or not the following items should be added to this count. (a) Merchandise on hand had been sold but returned by customers for warranty work._______ (b) Uptown Co. sent merchandise out on a consignment basis just prior to the physical count.__ (c) Before year-end the company ordered merchandise on FOB destination. The merchandise was shipped by the supplier but had not been received at year-end.--------______ (d) Before year-end the company ordered merchandise on FOB shipping point terms. The merchandise was shipped the same day but had not been received._____ (e) Merchandise sold FOB shipping point at year-end was picked up by the freight co._____ Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the year-end inventory count.Second Chance Clothing (SCC) obtains goods on consignment and through purchase and sellsthem to others. The following events occurred close to SCC’s October 31 year-end._____ a. On November 2, SCC received goods on consignment from Apparel Corp._____ b. On October 31, SCC received goods on consignment from Apparel Corp._____ c. Goods in transit to SCC were shipped by Shoe, Inc., on October 31, FOB shipping point._____ d. Goods in transit to SCC were shipped by Shoe, Inc., on October 31, FOB destination.Required:Indicate (Yes or No) whether SCC should include each item in its inventory balance at October 31.Hampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count. (a) Merchandise on hand had been sold earlier in the year but had been returned by customers for various warranty repairs. (b) Hampton Co. sent merchandise on a consignment basis on December 31 just prior to the physical count. (c) On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31. (d) On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31. (e) Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31. (f) Merchandise shipped to a customer FOB shipping point was picked up by the freight company on December 28 but had…
- The Marigold Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. An invoice for $8,700, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows that the materials were received on December 28, 2020. Materials costing $8,000 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns were entered into Marigold's general ledger on December 28, even though the returned items did not arrive at the vendor's office until January 6, 2021. 2. Materials costing $28,700, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a railroad car on the company's siding on that date and had not…Palisade Creek Co. is a merchandising business that uses the perpetual inventory system.The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed:May 1. Paid rent for May, $5,000.3. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.4. Paid freight on purchase of May 3, $600.6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.7. Received $22,300 cash from Halstad Co. on account.10. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.13. Paid for merchandise purchased on May 3.15. Paid advertising expense for last half of May, $11,000.16. Received cash from sale of May 6.19. Purchased merchandise for cash, $18,700.19. Paid $33,450 to Buttons Co. on account.20. Paid Korman Co. a cash refund…Coronado Machine Company maintains a general ledger account for each class of inventory, debiting such accounts for increases during the period and crediting them for decreases. The transactions below relate to the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. An invoice for $12,960, terms f.o.b. destination, was received and entered January 2, 2020. The receiving report shows that the materials were received December 28, 2019. 2. Materials costing $44,800, shipped f.o.b. destination, were not entered by December 31, 2019, “because they were in a railroad car on the company’s siding on that date and had not been unloaded.” 3. Materials costing $11,680 were returned to the supplier on December 29, 2019, and were shipped f.o.b. shipping point. The return was entered on that date, even though the materials are not expected to reach the supplier’s place of business until January 6, 2020. 4. An invoice for…
- The ABC sole proprietorship deals with the trade of IT items and the provision of related services. Carry out the adjustment entries of the accounts for the fiscal year 20X6 as well as those for the determination of the gross profit taking into account the following information: For the accounting of inventories, the company applies a periodic inventory and evaluates the inventories using the weighted average cost method. The company trades the kind P. The initial inventory consists of 20 units with a purchase price of € 50 per unit. In the fiscal year, 20X6 bought 80 units for € 55 per unit and 80 units for € 60 per unit. In the inventory of 31/12/20X6, the stocks in the warehouse consist of 30 units whose liquidation price amounts to € 55 per unit. Total gross merchandise sales amounted to €45,000 and sales returns to €400. During the 20x6 fiscal year, the company had purchased $1,000 at a $200 exchange rate= € 1. On 31/12/20X6, the current USD exchange rate is $1 =€ 1.2. The…EZ Curb Company completed the following transactions. The annual accounting period ends December 31. Jan. 8 Purchased merchandise on account at a cost of $19,000. (Assume a perpetual inventory system.) 17 Paid for the January 8 purchase. Apr. 1 Received $48,000 from National Bank after signing a 12-month, 11.0 percent, promissory note. June 3 Purchased merchandise on account at a cost of $23,000. July 5 Paid for the June 3 purchase. Aug. 1 Rented out a small office in a building owned by EZ Curb Company and collected six months’ rent in advance, amounting to $9,000. (Use an account called Unearned Revenue.) Dec. 20 Collected $200 cash on account from a customer. Dec. 31 Determined that wages of $8,500 were earned but not yet paid on December 31 (Ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to rent. Required: 1. For each…Two different companies, Vogel Corporation and Hatcher Corporation, entered into the following inventory transactions during December. Both companies use a perpetual inventory system using the gross method of recording sales discounts. • December 3 - Vogel Corporation sold inventory on account to Hatcher Corporation for $481,000, terms 2/10, n/30. This inventory originally cost Vogel $313,000. December 8 - Hatcher Corporation returned inventory to Vogel Corporation for a credit of $3,300. Vogel returned this inventory to inventory at its original cost of $2,147. • December 12 - Hatcher Corporation paid Vogel Corporation for the amount owed. Required: a. Prepare the journal entries to record these transactions on the books of Vogel Corporation. b. What is the amount of net sales to be reported on Vogel Corporation's income statement? c. What is the Vogel Corporation's gross profit percentage?
- Slinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms of 2/10, 1/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare the journal entry to record the purchase. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the purchase of merchandise subject to credit terms 2/10, n/30. Note: Enter debits before credits. Date June 10, 2024 Record entry General Journal Clear entry Debit Credit View general journalSlinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms of 2/10, 1/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Complete this question by entering your answers in the tabs below. Req 1 Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Req 2 and 3 View transaction list Journal entry worksheetGeorgetown purchased supplies on August 8, 20X2, for $4,400. At the fiscal year-end on September 30, the inventory of suppiles was $3,150. Required: a Assume that Georgetown uses the consumption method of accounting for inventortes. (If no entry is r transaction/event, select "No journal entry required" in the first account field.) Prepare the entry for the purchase on August 8, 20x2. Prepare the entries required on September 30, 20x2, including the closing of the Expenditures account. Assuming the supplies were used during 20X3, prepare the entries on September 30, 20X3. View transaction list Journal entry worksheet Creifil