James Smith, an auditor with Knapp CPAS, is performing a review of Crane Company's inventory account. Crane 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 $620,000. However, the following information was not considered when determining that amount. Included in the company's count...
requirement 2. Set up T accounts and post the journal entries to show the ending balances in the inventory and cost of goods sold accounts only Suppose Cold As Ice Air Conditioner Company engaged in the following transactions during June of the current year Click the icon to view the transactions.) Requirement Journalize the transactions. Assume Cold As Ice uses...
July 1 Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. 3 Paid $110 cash for freight charges on the purchase of July...
Ending Inventory Costs Sandy Chen owns a small specialty store, named Chen's Chattel, whose year-end is June 30. A physical inventory taken on June 30 reveals the following: Determine the total amount that should be included in Chen’s Chattel’s year-end inventory. Cost of merchandise on the showroom floor and in the warehouse $38,400 Goods held on consignment (consignor is National...
Record the following transactions in the T-accounts provided for S&V Office Supply Company. EXERCISE ONE: Record the following transactions in the T-accounts provided (NEXT PAGE) for S & V Office Supply Company. 1) S& V purchased $500 worth of merchandise for cash. There were no shippng costs. S & V purchased $4,000 of merchandise on account: Terms n/30. FOB Shipping...
Alexander Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that Alexander Company received on September 17. September 7 Sold goods costing $8,400 to King Company on account, $14,000, terms 5/10, n/30. The goods are shipped FOB Shipping Point, Freight Prepaid by Seller, $220. September 13 King Company returned undamaged merchandise previously...
Coleman Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that Coleman Company received on June 19. June 8 Sold goods costing $3,000 to Powell Company on account, $5,000, terms 5/10, n/30. The goods are shipped FOB Shipping Point, Freight Prepaid by Seller, $330. June 14 Powell Company returned undamaged merchandise previously...
On December 23rd, 2019 Nike shipped goods to REI. The invoice was for $125,000 and specified FOB destination. The goods arrived at the REl retail store on January 2nd, 2020. Both Nike and REI have December 31 fiscal year ends. For 2019 Nike would record [Select] in Revenue because under FOB destination Revenue is recognized [Select] On December 23rd, 2019...
Prepare journal entries to record the following merchandising transactions of Lou’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron. Aug. 1 Purchased merchandise from Aron Company for $4,000 under credit terms of 1/10, n/30, FOB destination,...
1. Headlands Industries uses a periodic inventory system. Its records show the following for the month of May, in which 77 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 31 $10 $310 15 Purchase 23 11 253 24 Purchase 37 13 481 Total 91 $1,044 Calculate the ending inventory at May 31 using the FIFO,...