al Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly ncial statements required by its bank. Inventory on hand at the end of October was $59,000. The following information for the nth of November was available from company records: urchases eight-in ales ales returns urchases returns ddition, the controller is aware of $10,500 of inventory that was stolen during November from one of the company's warehouses. uired: 1. Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%. 2. Calculate the estimated inventory at the end of November, assuming a markup on cost of 60%. Complete this question by entering your answers in the tabs below. Lequired 1 Required 2 $ 115,000 3,500 205,000 10,000 6,500 alculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%. ginning inventory s: Net purchases Freight-in Cost of goods available for sale s: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold imated cost of inventory before theft s: Stolen inventory imated ending inventory Required 1 Required 2 < Required 1 ginning inventory us: Net purchases Freight-in $ 0 0 0 0 Complete this question by entering your answers in the tabs below. Required 2 > alculate the estimated inventory at the end of November, assuming a markup on cost of 60%. ote: Do not round intermediate calculations.
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.
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