1. A whisteblower notified Bandolin Co. that one of its employees is stealing its merchandise. A physical count on Nov. 30, 20x1 revealed P 443, 000 of Product X were on hand. The accounting records shows the following: Inventory, jan 1 162, 000 Purcases, Jan 1 to Nov. 30( includes P56,000 goods in transit shipped FOB shipping point) 3,324,000 Purchase return and discounts 16,000 Freight in 104,000 Sales 4,654,000 Sales returns 10,000 Bandolin Co, consistently marks-up Product X at 35% based on sale price. How much is the loss due to theft? a. 555,400 b. 499,400 c. 112,400 d. 56,400
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
1. A whisteblower notified Bandolin Co. that one of its employees is stealing its merchandise. A physical count on Nov. 30, 20x1 revealed P 443, 000 of Product X were on hand. The accounting records shows the following:
Inventory, jan 1 162, 000
Purcases, Jan 1 to Nov. 30( includes P56,000 goods in transit shipped FOB shipping point) 3,324,000
Purchase return and discounts 16,000
Freight in 104,000
Sales 4,654,000
Sales returns 10,000
Bandolin Co, consistently marks-up Product X at 35% based on sale price. How much is the loss due to theft?
a. 555,400 b. 499,400 c. 112,400 d. 56,400
2. Manual Corp. determined the following information for the purpose of applying the retail method of inventory estimation:
cost retail
inventory beg. P45,000 P 75,000
Net sales ( net of 40k and 10k discount) 590,000
Purchases 270,000 590,000
Freight in 6,750
net mark up 50,000
net markdowns 20,000
normal shrinkage 12,000
How much is the cost of good solds under each of the following methods?
Average FIFO
a. 281,229.67 282,827.77
b. 273, 329.30 284, 698.80
c. 283,329.30 282,827.77
d. 283,329.30 284, 698.80
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