Bramble Company, a manufacturer of small tools, provided the following information from its accounting records for the year endedDecember 31, 2025.Inventory at December 31, 2025 (based on physical count of goods in Bramble's plant, at cost, on December 31, 2025)Accounts payable at December 31, 2025Net sales (sales less sales returns)Additional information is as follows.1.2.3.4.5.6.7.8.$1,605,1301,167,2008,334,500Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2025. These tools had acost of $31,750 and were billed at $40,750. The shipment was on Bramble's loading dock waiting to be picked up by thecommon carrier.Goods were in transit from a vendor to Bramble on December 31, 2025. The invoice cost was $76,750, and the goods wereshipped f.o.b. shipping point on December 29, 2025.Work in process inventory costing $30,750 was sent to an outside processor for plating on December 30, 2025.Tools returned by customers and held pending inspection in the returned goods area on December 31, 2025, were notincluded in the physical count. On January 8, 2026, the tools costing $32,750 were inspected and returned to inventory.Credit memos totaling $47,750 were issued to the customers on the same date.Tools shipped to a customer f.o.b. destination on December 26, 2025, were in transit at December 31, 2025, and had a cost of$26,750. Upon notification of receipt by the customer on January 2, 2026, Bramble issued a sales invoice for $42,750.Goods, with an invoice cost of $27,750, received from a vendor at 5:00 p.m. on December 31, 2025, were recorded on areceiving report dated January 2, 2026. The goods were not included in the physical count, but the invoice was included inaccounts payable at December 31, 2025.Goods received from a vendor on December 26, 2025, were included in the physical count. However, the related$56,750 vendor invoice was not included in accounts payable at December 31, 2025, because the accounts payable copy ofthe receiving report was lost.On January 3, 2026, a monthly freight bill in the amount of $8,750 was received. The bill specifically related to merchandisepurchased in December 2025, one-half of which was still in the inventory at December 31, 2025. The freight charges were not (a1) Prepare a schedule of adjustments as of December 31, 2025, to the initial amounts per Bramble's accounting records. (If an amountreduces the account balance then enter either with a negative sign preceding the number, e.g. -15,000 or in parenthesis, e.g. (15,000).)Initial amountsAdjustments:1.2.3.4.5.6.7.8.Total adjustmentsAdjusted amountsInventoryBRAMBLE COMPANYSchedule of AdjustmentsDecember 31, 2025$1,605,130Accounts Payable$1,167,200Net Sales$8,334,500

The goods in transit mean inventories or items that are being moved from one place to another and…

reduces the account balance then enter either with a negative sign preceding the number, e.g. -15,000 or in parenthesis, e.g. (15,000).) Initial amounts Adjustments: 1. 2. 3. 4. 5. 6. 7. Inventory BRAMBLE COMPANY Schedule of Adjustments December 31, 2025 $1,605,130 10000 Accounts Payable $1,167,200 TINUT Net Sales $8,334,500

reduces the account balance then enter either with a negative sign preceding the number, e.g. -15,000 or in parenthesis, e.g. (15,000).) Initial amounts Adjustments: 1. 2. 3. 4. 5. 6. 7. Inventory BRAMBLE COMPANY Schedule of Adjustments December 31, 2025 $1,605,130 10000 Accounts Payable $1,167,200 TINUT Net Sales $8,334,500

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business

Section: Chapter Questions

Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...

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Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 6-column spreadsheet is presented on page 1100. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31,20--. 2. Prepare a statement of retained earnings for the year ended December 31,20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.
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Pappas Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
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