Flounder Corp is trying to determine the value of its ending inventory as of March 31, 2014, the company’s year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so,...
Umatilla Bank and Trust is considering giving Indigo Corporation a loan. Before doing so, it decides that further discussions with Indigo's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $278,800. Discussions with the accountant reveal the following. 1. Indigo shipped goods costing $55,500 to Hemlock Company FOB shipping point on...
You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’s financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals. ITEMS TO COMPLETE FOR THIS MILESTONE...
E6.1 (LO 1) Premier Bank and Trust is considering giving Alou Company a loan. Before doing so, management decides that further discussions with Alou's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of £297,00o. Discussions with the accountant reveal the following. Determine the correct inventory amount 1. Alou sold goods...
3/ please answer part ( b) only i posted before two times but the answer not correct Novak Limited is trying to determine the amount of its ending inventory as at February 28, the company’s year end. The accountant counted everything in the warehouse in early March, which resulted in an ending inventory amount of $200,800. However, the accountant was...
Central Appliance Center accumulates the following cost and net realizable value data at December 31. Inventory Categories Cameras Camcorders Blu-ray players Cost Data $12,000 9,500 14,000 Net Realizable Value Data $12,100 9,700 12,800 Compute the lower-of-cost-or-net realizable value for the company's total inventory. The lower-of-cost-or-market value $ Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing...
At December 31, 2019, Sharon Lee Corporation reported current assets of $343,980 and current liabilities of $196,600. The following items may have been recorded incorrectly. 1. Goods purchased costing $20,440 were shipped f.o.b. shipping point by a supplier on December 28. Lee received and recorded the invoice on December 29, 2019, but the goods were not included in Lee's physical...
Bob Corporation entered into a contract to sell parts to Zeck. The contract provided that the goods would be shipped "FOB buyer's warehouse." Bob shipped parts to Zeck after Zeck paid for the goods. While the goods were in transit, some were stolen from the carrier. When Zeck checked the invoice, Zeck discovered some of the goods were missing. Zeck...
William Brown, an auditor with Knapp CPAs, is performing a review of Sheridan Company's inventory account. Sheridan did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $623,000. However, the following information was not considered when determining that amount. 1. Included in the company's...
Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at year end, December 31. 1. $2,000 of merchandise purchased from a supplier, shipped FOB shipping point on December 29, in transit at year-end. 2. $1,000 of merchandise shipped to a customer on December 30, FOB destination. The goods arrived at the customer's location on January...