Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $59,000 cash from the issue of common stock. 2. Paid $21,900 cash to purchase inventory. 3. Sold Inventory costing $11,500 for $28,300 cash. 1. Physically counted Inventory, had inventory of $7,100 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.

Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $59,000 cash from the issue of common stock. 2. Paid $21,900 cash to purchase inventory. 3. Sold Inventory costing $11,500 for $28,300 cash. 1. Physically counted Inventory, had inventory of $7,100 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter6: Inventories

Section: Chapter Questions

Problem 6.6BPR: Lower-of-cost-or-market inventory Data on the physical inventory of Katus Products Co. as of...

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Problem 13 Four Company, which maintains it inventory using the perpetual system, had the followingbalances at the end of the year: Cost of Goods Sold 4,500,000Net Sales 6,000,000Inventory 1,200,000Accounts Payable 3,000,000Accounts Receivable 4,000,000 Compute the adjusted balances of the above items after considering the following information:-Four consigned to Ellie, at the beginning of December 2020, goods costing P100,000 andpaid freight of P5,000. The relevant commission is 5% of the selling price of P200,000. Bythe end of the year, Ellie has not remitted yet any of the sales but reported on January 5,2021 that by December 31, 2020, all of the goods were sold. The said inventory wasincluded in the physical count of the company.- The company sold on FOB shipping point goods costing P200,000 at selling price which is150% of cost on December 29, 2020, sale was recognized on the said date, and goodswere excluded from the inventory count. It was later found out that said goods were…
Exercise 5-19 (Algo) Inventory turnover and days' sales in inventory LO A3 The following is information for Palmer Company. Year 3 $ 613,825 99,400 Cost of goods sold Ending inventory Year 2 $ 396,650 89,750 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Inventory turnover Days' sales in inventory Year 1 $361,300 94,500 Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Numerator / Denominator Inventory turnover Days' sales in inventory Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Numerator / Denominator Ratio < Prev 0 0 4 of 9 # Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from…
Exercise 6-17 (Algo) Analyzing inventory errors LO A2 Vibrant Company had $1,000,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $550,000 in each of those years. It also maintained a $300,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $280,000 rather than the correct $300,000. 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Cost of goods sold Cost of goods sold…
2 eBook Hint Print References Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $84,000 cash from the issue of common stock. 2. Paid $37,000 cash to purchase inventory. 3. Sold inventory costing $22,100 for $43,000 cash. 4. Physically counted inventory showing $14,700 inventory was on hand at the end of the accounting period. Required: a. Determine the amount of the difference between book balance and the actual amount of inventory as determined by the physical count. Difference in book and actual inventory Check my work
Problem 4 Bingerton Industries began the year with inventory of $85,000. Purchases of inventory on account during the year totaled $310,000. Inventory costing $335,000 was sold on account for $520,000. Required: Record transactions for the purchase and sale of inventory using a perpetual system.
Problem 6 INVENTORY, On January 1, 20X6, the River Company's beginning inventory $400,000. During 20X6, River purchased $1,900,000 of additional inventory. On December 31, thre 20X6, River's ending inventory was $500,000. a. What is the inventory turnover and the age of inventory for 20X6? b. If the inventory turnover in 20X5 was 3.3 and the average age of the inventory was 100.6 days, evaluate the results 20X6.
Exercise 6-5A Calculate inventory amounts when costs are declining (LO6-3) Skip to question [The following information applies to the questions displayed below.] During the year, Trombley Incorporated has the following inventory transactions. Date Transaction Numberof Units UnitCost Total Cost Jan. 1 Beginning inventory 30 $ 32 $ 960 Mar. 4 Purchase 35 31 1,085 Jun. 9 Purchase 40 30 1,200 Nov. 11 Purchase 40 28 1,120 145 $ 4,365 For the entire year, the company sells 111 units of inventory for $40 each. 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Chapter 5 Quiz Using the following information for a periodic inventory system, what is the amount of net income? Purchases $32,000 Selling expense $960 2. Inventory, September 1 5,700 Inventory, September 30 6,370 3. Administrative expense 910 Sales 63,000 Rent revenue 1,200 Interest expense 1,040 4. Oa. $28,310 5. Ob. $29,510 Oc. $29,350 6. Od. $29,960 7. 8. 9. 10. 11. 12. 13. V
Exercise 13-4A (Algo) Inventory turnover LO 13-2 Selected financial information for Zachary Company for Year 4 follows: Sales $ 1,750,000 Cost of goods sold 1,225,000 Merchandise inventory Beginning of year 155,000 End of year 190,000 RequiredAssuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? (Round your answer to 2 decimal places.)
MODLUE 5 INVENTORY PERIODIC Please record the following transactions and explain your answer. 1) On June 7 sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer. 4) Received a check for the Smith June 7 sale.
Problem 6 INVENTORY. On January 1, 20X6, the River Company's beginning inventory $400,000. During 20X6, River purchased $1,900,000 of additional inventory. On December 31. 20X6, River's ending inventory was $500,000. a. What is the inventory turnover and the age of inventory for 20X6? b. If the inventory turnover in 20X5 was 3.3 and the average age of the inventory was 100.6 days, evaluate the results 20X6: Page 75 of 161
Exercise 5-4A ( Algo ) Effect of inventory cost flow ( FIFO , LIFO , and weighted average ) on gross margin LO 5-1 [ The following information applies to the questions displayed below . ] The following information pertains to Mason Company for Year 2 : Beginning inventory 152 units @ $ 48 430 units @ $ 72 Units purchased Ending inventory consisted of 60 units . Mason sold 522 units at $ 144 each . All purchases and sales were made with cash . Operating expenses amounted to $ 4,050 . Exercise 5-4A ( Algo ) Part a Required a . Compute the gross margin for Mason Company using the following cost flow assumptions : ( 1 ) FIFO , ( 2 ) LIFO , and ( 3 ) weighted average . ( Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount . ) Gross Margin FIFO LIFO Weighted average