A car dealer acquires a used car for $17,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car ifadditional costs include$200 for transportation-in.$180 for shipping insurance.$750 for car import duties.. $170 for advertising.$2,000 for sales staff salaries.$100 for trimming shrubs.CostIncluded inInventory CostExpensed asincurredCostTransportation-in$17,000200Import duties750Insurance during shipment180Advertising170Sales staff salariesTrimming shrubs2.000100Total$20,400

1. Identify the Cost ComponentsThe car dealer acquires a used car for $17,000.Additional costs…

Answered: A car dealer acquires a used car for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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perpetual inventory system of stellarMar. Stellar Stores purchases $9,100 of merchandise for resale from Sunland Wholesalers, terms 2/10, n/30, FOB shipping point.12 The correct company pays $160 for the shipping charges.Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Sunland gives Stellar a$1,000 credit on its account.21Stellar Stores purchases an additional $13.000 of merchandise for resale from Sunland Wholesalers, terms 2/10, n/30,FOBdestination.22The correct cormpany pays $195 for freight charges.23Stellar returns $300 of the merchandise purchased on March 21 because it was damaged. Sunland gives Stellar a $300credit on its account.30Stellar paid Sunland the armount owing for the merchandise purchased on March 1.31Stellar paid Sunland the amount owing for the merchandise purchased on March 21.Additional information:Mar.Sunland's cost of the merchandise sold to Stellar was $3,900.3Sunland's cost of the merchandise returned by Stellar…
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Prepare an inventory card showing the pricing of issues and ending inventory on the basis of (a) Simple Average and (b) FIFO methods from the following information 2016 March 1 Purchased 100 units @ Rs.10 each March 2 Purchased 200 units @ Rs. 12 each. March 5 Issued 250 units to Job. March 7 Purchased 200 units @ Rs. 15 each March 10 Purchased 300 units @ Rs.18 each March 13 Issued 200 units to Job March 18 Issued 200 units to Job March 20 Purchased 100 units @ Rs.15 each March 25 Issued 150 units to Job
JC ENTERPRISE SOLD MERCHANDISE FOR $120000.00 PURCHASE FOODS FOR $71000.00 PAID RENT $12000.00 PAID SALARY $ 3000.00 PAID UTILITIES EXPENSE $ 5000.00 PAID ADVERTISING EXPENSE $2000.00 PAID TRANSPORTATION EXPENSE $ 1200.00 PURCHASE SUPPLIES ON ACCOUNT $ 750.00 Prepare Journal Entries, General Ledger, Income Statement (Profit/Loss Statement) and Balance Sheet
Net Solutions purchased 200 units of Commodity 30 on account for $15 each FOB shipping point, credit terms: 2/15, n/60 on October 21, 2021, from P. Moore. 80 units were damaged in shipment, and were returned on Oct. 27. 2021. Net Solution paid ABC Shipping agency $136 Assume the company uses perpetual inventory system. (9')Journalize all the transactions for Net Solutions. EHKONBor the delivery and paid the balance on Nov 4. WIDDINI PEHKON the DEHK WIDDINI
How to journalized May 1: Paid rent for May, $5,000, May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. May 4: Paid freight on purchase of May 3, $600. May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000 May 7: Received $22,300 cash from Halstad Co. on account May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. May 13: Paid for merchandise purchased on May 3 May 15: Paid advertising expense for last half of May, $11,000. May 16: Received cash from sale of May 6. May 19: Purchased merchandise for cash, $18,700. May 19: Paid $33,450 to Buttons Co. on account May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. May 20: Sold merchandise on account to…
Bonita's Used Cars uses the specific identification method of costing inventory. During March, Indrisano purchased three cars for $11500, $14700, and $19100, respectively. During March, two cars are sold for a total of $35000. Bonita determines that on March 31, the $14700 car is still on hand. What is Bonita's gross profit for March? $5200 Ⓒ$1200 $8800 $4400
Travis Company purchased merchandise on account from a supplier for $12,300, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, record the journal entries required for the above transactions. If an amount box does not require an entry, leave it blank. a. b.
Required: Journal Entries using PERIODIC INVENTORY SYSTEM 1- Paid P300 for store supplies bought from ABC Store. 7- Bought a typewriter from Honk Store for office use, P15,000. Terms: 2/10, n/30. 7- Paid the freight for the above purchase, P500. 8- Cash purchases, P6,000. 9- Bought merchandise from NOA Company, P20,000. Terms: 2/10, n/30. FOB Shipping point. 9- Paid freight for the above merchandise, P 300. 10- Account purchases from: Lilet P 15,000 2/10, n/30 Marimar 10,000 2/10, n/30 12- Received a credit memo for P1,000 from NOA for goods returned to them. 15- Bought merchandise from Mr. Cruz, P15,000. Terms: Down payment of P5,000 and the balance, a 6% 10-day note. 17- Paid in full the account on…

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