Required:(a) Compute (i) the cost of goods sold; (ii) gross profit; and (iii) the gross profit rate (in %) for the year 2021. Show workings. (b) Prepare two closing entries to create the Cost of Goods Sold account and update the Inventory account. Serenity Company ("Serenity") is a shop selling electrical goods and adopts perpetual inventorymethod. As at 30 November 2021, the inventory account has a balance of S$230,000 (Dr.). Beloware transactions of Serenity in December. Prepare the journal entries of the transactions.December1Received $500 from a customer to settle an outstanding account.3Purchased electric cookers from Teta Company for $10,000 on account.Returned two defective cookers to Teta Company purchased on 3December at $450 per piece.5A customer returned two pieces of goods to Serenity. The customeroriginally bought the goods at $600 per piece, now received a cash refund.Serenity sold the goods at 20% gross profit rate.1015Paid the amount owed to Teta Company.20Sold all the cookers bought from Teta Company this month on credit at20% gross profit rate.31Serenity conducted an inventory count and found there was $215,960inventory on hand. Arppel Company uses a periodic inventory system and closes its accounts annually on 31December. Below are extracted from the books of the Company:Account balance as at 31 Dec 2020InventoryAccount balance as at 31 Dec 2021$42,000PurchasesSalesSales Returns$440,000S890,000S22,000A complete physical inventory taken as at 31 December 2021 indicates goods costing $48,000remains in stock.

Name: Required:(a) Compute (i) the cost of goods sold; (ii) gross profit; an
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Description: Required:(a) Compute (i) the cost of goods sold; (ii) gross profit; and (iii) the gross profit rate (in %) for the year 2021. Show workings. (b) Prepare two closing entries to create the Cost of Goods Sold account and update the Inventory account. Se

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Business

Accounting

equired: (a) Compute (i) the cost of goods sold; (ii) gross profit; and (iii) the gross profit rate (in %) for the year 2021. Show workings. (b) Prepare two closing entries to create the Cost of Goods Sold account and update the Inventory account.

equired: (a) Compute (i) the cost of goods sold; (ii) gross profit; and (iii) the gross profit rate (in %) for the year 2021. Show workings. (b) Prepare two closing entries to create the Cost of Goods Sold account and update the Inventory account.

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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On the work sheet, ending merchandise inventory will appear on the a. debit side of the Income Statement column. b. credit side of the Balance Sheet column. c. credit side of the Trial Balance column. d. debit side of the Balance Sheet column. e. credit side of the Adjustments column.
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Sheffield Corp. markets CDs of numerous performing artists. At the beginning of March, Sheffield had in beginning inventory 2,500 CDs with a unit cost of $8. During March, Sheffield made the following purchases of CDs. March 5. March 13 1,900 @ 3,500 @ $9 $10 March 21 March 26 5,200 @ $11 $12 1,900 @ During March 11,500 units were sold. Sheffield uses a periodic inventory system.
Vermont Resources, which uses the FIFO inventory costing method, has the following account balances at October 31, 2025, prior to releasing the financial statements for the year: $ Merchandise Inventory, ending Cost of Goods Sold Net Sales Revenue 15,500 72,000 122,000 Requirement 1. Prepare any adjusting journal entry required from the given information. (Record debits first, then credits. Select the explanation on the last line of the journal entry. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Accounts and Explanation Date Oct. 31 Debit Vermont has determined that the current replacement cost (current market value) of the October 31, 2025, ending merchandise inventory is $12,000. Read the requirements. Credit
why both the "beginning inventory" and "ending inventory" figures both appear on the Income Statement of the worksheet for the Periodic Inventory Method.
Identify which of the following statement is correct for perpetual inventory system? Under the perpetual Inventory system, on the purchase of Inventory purchase account is debited. When valuing ending Inventory under a perpetual Inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. When valuing ending Inventory under a perpetual Inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. 09/03/2024 15:01 When valuing ending Inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic Inventory system.
Please help me with required 1 and 2.
Jenbright Incorporated adopted the dollar-value LIFO method last year. Last year's ending inventory was $53,700. The ending inventory for the current year at year-end (FIIFO) costs is $98,000 and on a dollar-value LIFO basis is $76,520. Based on this information, prepare the journal entry required to adjust Jenbright's ending inventory from a FIFO to a dollar-value LIFO basis. Prepare the journal entry required to adjust Jenbright's ending inventory from a FIFO to a dollar-value LIFO basis. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the adjusting entry for the current year. Account Year-end
The cost of merchandise sold and merchandise inventory is determined from the inventory cost flow assumption. To illustrate, beginning inventory, purchases and sales of shoes are shown below for Grant Co., using a perpetual inventory system. 1. In the table below, fill in the March 24 quantity, unit cost, and total cost in the spaces provided for determining Cost of Merchandise Sold (COMS) and Merchandise Inventory under the FIFO cost flow assumption, assuming 32 shoes are sold on March 24. Determine the COMS and Merchandise inventory final balances. If units are in inventory or are listed under cost of merchandise sold at two different costs, enter the units that were purchased earliest first. 2. In the table below, fill in the March 24 quantity, unit cost, and total cost in the spaces provided for determining Cost of Merchandise Sold (COMS) and Merchandise Inventory under the LIFO cost flow assumption, assuming 32 shoes are sold on March 24. Determine the COMS and Merchandise…
WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors.
[The following information applies to the questions displayed below.] A company reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Quantity Unit Cost Unit NRV Furniture 170 $ 82 $ 97 Electronics 47 370 285 Record the adjustment for inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Cost of Goods Sold Inventory