Case 5. Hanggang Dito Na Lang Company reported the following information for the current year:575,000240,00070,000SalesCost of salesAdministrative expensesLoss on sale of equipmentSales commissionInterest revenueFreight outLoss on early retirement of long-term debtUncollectible accounts expense10,00050,00025,00015,00020,00015,000The finished goods inventory was P400,000 on January 1 and P360,000 on December 31, 2020. The tax rate is 30%.10. What amount should be reported as income from continuing operations?

Here in this question, we are require to calculate how much income need to record as income from…

Answered: Case 5. Hanggang Dito Na Lang Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

pvn.1
Thursday Co. is estimating the cost of its inventory at month-end. the accountant determined the following: cost retail inventory beg. $20,000 $ 75,000 Purchases 110,600 110,600 Freight in 4,000 Purchase discounts 1,000 Purchase returns 10,400 17,200 Departamental Transfers- in 2,000 3,000 Departamental Thansfers-out 1,600 2,400 markups 12,000 Markups cancellation…
The following selected information is for Sandhill Company for the year ended January 31, 2021: Freight in $6,500 Purchase discounts $12,000 Freight out 7,500 Purchase returns and allowances 16,500 Insurance expense 12,000 Rent expense 20,500 Interest expense 6,000 Salaries expense 60,800 Merchandise inventory, beginning 61,400 Salaries payable 2,500 Merchandise inventory, ending 42,000 Sales 324,000 O. G. Pogo, capital 105,000 Sales discounts 14,000 O. G. Pogo, drawings 42,000 Sales returns and allowances 20,400 Purchases 213,000 Unearned sales revenue 4,500 prepare closing entries
Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,612,000. Dogwood had the following balances: January 1 December 31 Accounts receivable $725,000 $775,000 Inventory 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory.$fill in the blank 1 2. Calculate the inventory turnover ratio.fill in the blank 2 times 3. Calculate the inventory turnover in days.fill in the blank 3 days 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly? Based on the ratios Nikkola is performing very well. Based on the ratios Nikkola is not performing as expected. Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somewhere in between
The following are selected ledger accounts of Spock Corporation at December 31, 2020. Cash $ 185,000 Salaries and wages expense (sales) $284,000 Inventory 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,275,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowances 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses 69,000 Telephone and Internet expense (sales) 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000 Insurance expense (office) 24,000 Miscellaneous office expenses 8,000 Advertising expense 54,000 Rent revenue 240,000 Delivery expense 93,000 Casualty loss (before tax) 70,000 Depreciation expense (office equipment) 48,000 Interest expense 176,000 Depreciation expense (sales equipment)…
Ace Company reported the following information for the current year: Sales $ 416,000 Cost of goods sold: Beginning inventory $ 141,000 Cost of goods purchased 279,000 Cost of goods available for sale 420,000 Ending inventory 150,000 Cost of goods sold 270,000 Gross profit $ 146,000 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $26,000. Given this information, the correct gross profit would be:
Assume that Rolando Corporation is considering the renovation and/or replacement of some of its older and outdated carpet-manufacturing equipment. Its objective is to improve the efficiency of operations in terms of both speed and reduction in the number of defects. The company’s finance department has compiled pertinent data that will allow it to conduct a marginal cost–benefit analysis for the proposed equipment replacement. The cash outlay for new equipment would be approximately $600,000. The net book value of the old equipment and its potential net selling price add up to $250,000. The total benefits from the new equipment (measured in today’s dollars) would be $900,000. The benefits of the old equipment over a similar period of time (measured in today’s dollars) would be $300,000. TO DO Create a spreadsheet to conduct a marginal cost–benefit analysis for Rolando Corporation, and determine the: 3. The net benefit of the proposed new equipment. *
Problem 1: (Gross profit method) PP Company reported the following information for the current year: Beginning inventory P 5,000,000 Purchases 26,000,000 Freight in 2,000,000 Purchase returns and allowances 3,500,000 Purchase discounts 1,500,000 Sales 40,000,000 Sales returns 3,000,000 Sales allowances 500,000 Sales discounts 1,000,000 A physical inventory taken at year-end resulted in an ending inventory of P4,000,000. At year-end, unsold goods out on consignment with selling price of P1,000,000 are in the hands of a consignee. The gross profit was 40% of sales. 1. What is the cost of good available for sale? a. 28m b.31m c.33m d.29.5m 2. What is the cost of good sold? a.21,900,000 b.22,200,000 c.21,300,000 d.24m 3. what is the estimated cost of inventory shortage? a. 1.8m b.2.7m c.1.2m d.2.1m
Alexandria Company provided the following data for the current year: Inventory end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows: Finished goods 200,000 decrease Goods in process 90,000 decrease Raw materials 100,000 increase Indirect labor 600,000 Factory taxes 130,000 Sales 8,000,000 Purchase 1,600,000 Office salaries 800,000 Freight in 80,000 Income tax expense 170,000 Depreciation-machinery 50,000 Advertising 120,000 Office supplies expense 30,000 Factory Superintendence 480,000 Direct labor 1,480,000 Factory heat, light and power 220,000 Doubtful account 100,000 Factory supplies expense 120,000 Sales salaries 520,000 Delivery expense 160,000 Factory maintenance 150,000 Required: Prepare an income statement for the current year supported by a…
45
ABC Company reported the following information with respect to cost of goods sold for the current year: Units Historical Cost Inventory- January 1 20,000 540,000 Purchases 55,000 2,890,000 Goods available for sale 75,000 3,430,000 Inventory- December 31 (25,000) (955,000) Cost of Goods Sold 50,000 2.475,000 The current cost per unit of inventory was P58 on January 1 and P72 on December 31. In the income statement restated to current cost, what is the cost of goods sold for the current year? a. 3,250,000 b. 2,475,000 c. 3,600,000 d. 2,900,000
Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $29,000 $55,000 Inventory (ending) 23,000 65,000 Purchases 339,000 177,000 Purchase returns 20,000 65,000 Required:1. Calculate cost of goods sold for each company.2. Calculate the inventory turnover ratio for each company.3. Calculate the average days in inventory for each company.4. Which company appears to be managing its inventory more efficiently?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS