Bedrock Company reported a December 31 ending inventory balance of $416,500. The following additionalinformation is also available: The ending inventory balance of $416,500 included $72,900 of consigned inventoryfor which Bedrock was the consignor. The ending inventory balance of $416,500 incorrectly included $23,800 ofoffice supplies that were stored in the warehouse and were to be used by the company's supervisors andmanagers during the coming year. Based on this information, the correct balance for ending inventory onDecember 31 is: Multiple Choice $416,500 $343,700 $309,000 $392,700 $319,900

It is important to understand the items that should be included in inventory at the end of an…

Answered: Bedrock Company reported a December 31…

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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Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: • The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was the consignor. • The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is:
You have been assigned to examine the financial statements of Zarle Company for the year ended December 31, 2020. You discover the following situations. 1. Depreciation of $3,200 for 2020 on delivery vehicles was not recorded. 2. The physical inventory count on December 31, 2019, improperly excluded merchandise costing $19,000 that had been temporarily stored in a public warehouse. Zarle uses a periodic inventory system. 3. A collection of $5,600 on account from a customer received on December 31, 2020, was not recorded until January 2, 2021. 4. In 2020, the company sold for $3,700 fully depreciated equipment that originally cost $25,000. The company credited the proceeds from the sale to the Equipment account. 5. During November 2020, a competitor company filed a patent-infringement suit against Zarle claiming damages of $220,000. The company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is…
The Marigold Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. An invoice for $8,700, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows that the materials were received on December 28, 2020. Materials costing $8,000 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns were entered into Marigold's general ledger on December 28, even though the returned items did not arrive at the vendor's office until January 6, 2021. 2. Materials costing $28,700, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a railroad car on the company's siding on that date and had not…
You have been assigned to examine the financial statements of PC corp. for the year ended December 31, 2021, as prepared following IFRS. You discover the following situations: 1. Physical inventory count on Dec 31, 2021, improperly included merchandise costing $3,800 that had been sold but not delivered until Jan 5, 2022. PC uses a periodic inventory system. 2. Depreciation of $1,700 for 2021 on delivery vehicles was not recorded. 3. A collection of $4,600 on account from a customer received on Dec 31, 2021, was not recorded. 4. At the beginning of 2020, the company purchased equipment for $225,000 (residual value $22,500) and had a useful life of 6 years. The accountant used straight-line amortization but failed to deduct the residual value in the calculation of the depreciation for 2020 and 2021. Instructions: Prepare the required journal entries (if any) to correct PC accounts, assuming each transaction is independent and assuming 2021 books are not closed.
The records of Thomas Company as of December 31, 2020, show the following: The accountant of Thomas Company discovers in the first week of January 2021 that the following errors were made by his staff. a. Goods costing $4.500 were in transit (FOB shipping point) and were not included in the ending inventory. The invoice had been received and the purchase recorded. b. Damaged goods (cost $4,100) that were being held for return to the supplier were included in inventory. The goods had been recorded as a purchase and the entry for the return of these goods had also been made. c. Inventory items costing $3,900 were incorrectly excluded from the final inventory. These goods had not been recorded as a purchase and had not been paid for by the company. d. Goods that were shipped FOB destination had not yet arrived and were not included in inventory. However, the invoice had arrived on December 30, 2020, and the purchase for $2,700 was recorded. e. Goods that cost $2.400 were segregated and…
Sterling Company reported their inventory as $50,700 on the books at December 31, 2021. At the close of the year, the auditors came in and identified the following issues: Product shipped to a customer December 28, 2021 f.o.b. destination costing $4,200, was not received by the customer until January 2022. The product was not included in the inventory balance because it was not in the warehouse. Samples costing $2,300 were delivered to a client for review on December 27, 2021. They are to be returned on January 5, 2022. They were not included in inventory because they were not in the warehouse. Purchases of product in the amount of $2,100 were in transit as of December 31, 2020. They had been shipped f.o.b. shipping point. They were not included in inventory because they were not in the warehouse. Product shipped to a customer December 28, 2020, f.o.b. shipping point cost $2,500. It was not received by the customer until January 2022. The product was not included in the…
Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year. The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000. Based on this information, the correct balance for ending inventory on December 31 is:
Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: • The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year. • The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000. Based on this information, the correct balance for ending inventory on December 31 is: Multiple Choice $374,000 $384,000 $438,000 $422,000 $460,000
Your review of Mine Company's inventory and related records for the year revealed the following information:Inventory, 1/1 - 450,000Purchases -3,150,000Sales -4,200,000You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory.What is the cost of the missing inventory assuming that Mine's gross profit remains at 30% of sales?
At the end of the current period, a company checks its physical inventory against its records and discovers the following. . 1,700 units (products) were in the warehouse. . 23 of the 1,700 units in the warehouse were destroyed when a storage shelf collapsed. . 180 units were loaded in a trailer. The units are to be delivered to a customer, terms FOB destination. • 140 units were out on consignment to a retailer. Determine the number of units in the company's period-end inventory. Units in Ending Inventory Units of Product in warehouse: Add: Less: Total units in period-end inventory 1,700 units units
The Taehyung Company counted its ending inventory on December 31. None of the following items were included when the total amount of the company’s ending inventory was computed: • P150,000 in goods located in Taehyung’s warehouse that are on consignment from another company. • P200,000 in goods that were sold by Taehyung and shipped on December 30 and were in transit on December 31; the goods were received by the customer on January 2. Terms were FOB Destination. • P300,000 in goods were purchased by Taehyung and shipped on December 30 and were in transit on December 31; the goods were received by Taehyung on January 2. Terms were FOB shipping point. • P400,000 in goods were sold by Taehyung and shipped on December 30 and were in transit on December 31; the goods were received by the customer on January 2. Terms were FOB shipping point. The company’s reported inventory (before any corrections) was P2,000,000. What is the correct amount of the company’s inventory on December 31? A.…
For each of the following potential unrecorded liabilities, determine the effects of the omission on both the balance sheet and income statement of the client. Assume that the inventories recorded on the balance sheet reflect the results of a year-end (December 31) physical inventory. Required: a. An invoice for $3,000 worth of inventory items, dated January 1 and bearing terms of FOB destination, was not recorded. The goods were shipped December 27 and were received on December 30. b. An invoice for $5,500 worth of inventory items, dated December 30 and bearing terms of FOB destination, was not recorded. The goods were shipped December 28 and received January 2. c. An invoice for $8,000 for a delivery truck, dated January 2 and bearing terms of FOB shipping point, was not recorded. The truck was shipped December 30 and received on January 3. d. An invoice for $1,000 for legal fees rendered in December was not recorded.

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