8:36 12. The estimated cost of the inventory soldthis year and expected to be returned bycustomers next year is $5,900.Open T accounts and enter the balances for theabove accounts. Make appropriate adjustmentsto the T accounts.Answer |E 14-11A Journalize Adjusting Entry forInventory Shrinkage: PerpetualInventory System(LO5) On December 31, Anup Enterprisescompleted a physical count of its inventory.Although the merchandise inventory accountshows a balance of $350,000, the physicalcount comes to $325,000. Prepare theappropriate adjusting entry under the perpetualinventory system.Series A ProblemsP 14-12A Preparation of Adjustments ona Spreadsheet for a MerchandisingBusiness: Periodic Method(LO1/2/3/4) The trial balance for the VeniceBeach Kite Shop, a business owned by MollyYoung is shown belowon page 552. Year-endadjustment information is as follows:(a, A physical count shows that merchandiseb)inventory costing $85,000 is on hand as ofDecember 31, 20--.(c, Young estimates that customers will begranted $5,700 in refunds of this year'sd,e)sales next year and the merchandiseexpected to be returned will have a cost of$4,300.Page 818 pages leftII 8:34 1Check Figure:/ Est. ending inv.: $39,000P 13-9A Retail Inventory MethodLO4 The following information is provided byRaynette's Pharmacy for the last quarter of itsfiscal year ending on March 31, 20--:CostRetailInventory, start of period,January 1, 20--$$32,00052,000176,000 268,000Net purchases during theperiodNet sales for the period260,000Required1. Estimate the ending inventory as ofMarch 31 using the retail inventorymethod.2. Estimate the cost of goods sold for thetime period January 1 through March 31using the retail inventory method.Answer ĮCheck Figure:/ Est. ending inv.: $39,000Series B ExercisesE 13-1B Inventory Errors(LO1) Assume that in year 1, the endingmerchandise inventory is understated byPage 1012 pages leftI

Adjusting entries: These entries are passed at the end of the year under the accrual based…

E 14-11A Journalize Adjusting Entry for Inventory Shrinkage: Perpetual Inventory System (LO5) On December 31, Anup Enterprises completed a physical count of its inventory. Although the merchandise inventory account shows a balance of $350,000, the physical count comes to $325,000. Prepare the appropriate adjusting entry under the perpetual inventory system.

E 14-11A Journalize Adjusting Entry for Inventory Shrinkage: Perpetual Inventory System (LO5) On December 31, Anup Enterprises completed a physical count of its inventory. Although the merchandise inventory account shows a balance of $350,000, the physical count comes to $325,000. Prepare the appropriate adjusting entry under the perpetual inventory system.

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

Adjustment for Merchandise Inventory Shrinkage Intrax Inc.'s perpetual inventory records indicate that $815,400 of merchandise should be on hand on December 31, 20Y4. The physical inventory indicates that $798,300 of merchandise is actually on hand. Illustrate the effects on the accounts and financial statements of the inventory shrinkage for Intrax Inc. for the year ended December 31, 20Y4. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. When entering the income statement effects, enter amounts that decrease net income as negative values. Balance Sheet Assets = Liabilities + Stockholders' Equity No Effect + Inventory = No Effect + Retained Earnings fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Statement of Cash Flows Income Statement No effect fill in the blank 10 Cost of…
Don't give answer in image
A-6
6
Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $600,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $600 of merchandise inventory shipped to Ann Corp. from a vendor f.o.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $21,600 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $960 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $21,600 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a…
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item CZ83 are as follows: March 1 82 units @ $34 5 66 units 91 units @ $37 76 units 11 21 Inventory Sale Purchase Sale Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on March 21 and (b) the inventory on March 31. a. Cost of merchandise sold on March 21 b. Inventory on March 31
ms: Series A OBJ. 2,3 The beginning inventory at Midnight Supplies and data on purchases and sales for a three- PR 7-1A FIFO perpetual inventory month period ending March 31, are as follows: brerionom exs 2 022.2 Date Jan. 1 10 28 30 Feb. 5 10 16 28 Mar. 5 14 25 30 Transaction Inventory Purchase Sale Sale Sale Purchase Sale Sale Purchase Sale Purchase Sale Number of Units 7,500 22,500 11,250 bo 3,750 1,500 54,000 27,000 25,500 45,000 30,000 7,500 26,250 Per Unit $ 75.00 85.00 150.00 150.00 150.00 87.50 160.00 160.00 89.50 160.00 90.00 160.00 Total $ 562,500 1,912,500 1,687,500 562,500 225,000 4,725,000 4,320,000 4,080,000 4,027,500 4,800,000 675,000 4,200,000
C5
8