Fred has a business of selling computers taking orders online and customers click and collect during Covid19 inSydney. Most customers pay at the time of delivery. His sales for the year ending 30th June 2021 were $3,500,000During the year ended 30th June 2021 purchases of computers were $1,500,000 and at 30th June 2021 stock onhand was $400,000. Lenny's closing stock for the year ended 30th June 2021 was $300,000.Explain the rules applicable to trading stock and calculate the income he should declare in relation to the facts asstated above for the year ending 30th June 2021A-US x x田 I</>

Cost of goods sold: Cost of goods sold refers to the expenses incurred by the company in order to…

Answered: Fred has a business of selling…

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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Please read the questions carefully the First question is asking for journal entry.
Perspective Company uses special journals to record its transactions. The following occurred during the month. Dec 1 Purchased 1,000 items of merchandise inventory costing 55 pesos each from A Corp. The company paid cash hence A Corp. gave the company a 3% discount. Perspective had to pay P1,000 for freight with terms, FOB Shipping Point. The company bought three pieces of laptops amounting to P50,000 each for cash. The laptops will be used by the new Accounting Officers. The laptops are estimated to have a useful life of 4 years with no salvage value. Purchased P130,000 of merchandise on credit with terms 2/10, n/30 Dec 3 from Z Ltd. The company sold 1,200 items to B Inc. for P 90,000 with terms 1/8, n/30. The cost of the merchandise is P67,000. The Company borrowed P500,000 cash by signing a note payable from Metrobank. The note has 45-day maturity and a 12% annual Dec 4 Dec 8 interest rate. B Inc. paid half of the amount due from them. The company paid in full the merchandise from Z…
Muller Computers stores its inventory in a warehouse that burned to the ground in late November, 2018. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory that was in the warehouse. The following information is available: Beginning Inventory 375,000 Purchases through November 30 470,250 Net sales revenue through november 30 793,000 The company's gross profit has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method. a.$528,550 b.$388,450 c.$369,950 d.$410,000
Financial Management Decision Making: 1. Mr. A is the owner of a grocery store. He was informed by the Fortune Cigarette supplier today that the price of Fortune Cigarette starting March 01, 2021 will be 1,000.00 per pack (Former Price of 900.00). He constantly orders 300 packs of Fortune Cigarette every week. Mr. A has extra cash of 270,000.00, would he grab the opportunity and double his weekly purchase of cigarettes before the price increase? 2. Given the same scenario in number 1 but here Mr. A has NO extra cash. But Mr. A can immediately make a bank loan of 270,000.00, two months to pay and with total interest for two months of 50,000.00 would he grab the opportunity and double his weekly purchase of cigarettes before the price increase? 3. Given the same scenario in number 1 but here Mr. A has NO extra cash. But Mr. A can immediately make a bank loan of 270,000.00, two months to pay and with total interest for two months of 10,000.00 would he grab the opportunity and double his…
A customer buys a company product on the internet for $1,000 with bitcoins. At the end of the year he bit coins are worth $5,000. The company's income statements show sales of $1,000. Why?
As part of the employment interview for an accounting job at Sound Design, you have been asked to answer the questions below, based on an invoice from one of Sound Design's vendors, Target Electronic Wholesalers. Invoice Stock # Description Unit Price Amount 4811V Stereo Receivers 50 ✕ $291.50 = _______________________ 511CX Blu-Ray Players 25 ✕ $139.28 = _______________________ 6146M Home Theater Systems 40 ✕ $659.12 = _______________________ 1031A LCD TVs 20 ✕ $598.00 = _______________________ Merchandise Total _______________________ Insurance + Shipping $1,250.00 Invoice Total _______________________ An invoice. The top of the invoice is divided into several distinct sections. The first section is located in the top left of the invoice, is unlabeled, and contains an image of a target with an arrow in the center of the target. The second section is located in the top center of the invoice, is unlabeled,…
In January 2024, Summit Department Store sells a gift card for $90 and receives cash. In February 2024 the customer comes back and spends $60 of the gift card to purchase a water bottle. What is the financial statement effect of the customer's purchase of the water bottle in February? Multiple Choice Increase assets by $30, decrease liabilities by $90, and increase stockholders' equity by $60 Decrease liabilities by $6 O and increase stockholders' equity by 560 increase assets by $60 and increase stockholders' equity by $60 Increase assets by $30, decrease liabilities by $60, and increase stockholders equity by $90
ABC is a Wholesale Merchandise trader. He uses periodic inventory system. He received an order from the customer and asking for 100 numbers of Desktop computers. The business is ready to give offers @ 10% trade discount on the invoice price if the customer place an order before 27th April 2021. Selling Price of the product is OMR 120 each. Which of the following journal entry is Correct in the books of ABC Merchandise business assuming that the order was placed by the customer on 25th April 2021? a. Debit Accounts payable OMR 10,800 Credit Merchandise Inventory OMR 10,800 b. Debit Accounts receivable OMR 12,000 Credit Sales OMR 12,000 c. Debit Accounts receivable OMR 10,800 Credit Sales 10,800 e d. Debit Purchase OMR 12,000 Credit Accounts payable OMR 10,800 Credit Discount 1,200
During the discussion about financing, Ella mentions that one of her clients, Timothy Hansen, has approached her about buying a significant interest in the new club. Having an interested investor sways the three to issue equity securities to provide the financing they need. On July 21, 2016, Mr. Hansen buys 90,000 shares at a price of $10 per shareThe club, LifePath Fitness, opens on January 12, 2017, and after a slow start begins to produce the revenue desired by the owners. The owners decide to pay themselves a stock dividend since cash has been less than abundant since they opened their doors. The 10% stock dividend is declared by the owners on July 27, 2017. The market price of the stock is $3 on the declaration date. The date of record is July 31, 2017 (there have been no changes in stock ownership since the initial issuance), and the issue date is August 15, 2017. By the middle of the fourth quarter of 2017, the cash fl ow of LifePath Fitness has improved to the point that the…
A) What is the APR for purchases made using this credit card? B) What is the maximum amount that Marcus can put on this credit card? C) Did Marcus pay off the entire balance of his credit card last month? D) Suppose Marcus pays the minimum payment due this month, what will his new balance be, after this payment is processed and assuming he makes no additional purchases?
Could you please help me with the journal and ledger of these transactions, I want to make sure I am on the right path. Thank you so much!
I. Street Bank is considering giving Fallen Company a loan. Before doing so, it decides that further discussions with Fallen's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $375,000. Discussions with the accountant reveal the following. 1. Fallen sold goods costing $55,000 to White Company FOB shipping point on December 28. The goods are not expected to reach White until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Fallen FOB destination on December 27 and were still in transit at year-end. 3. Fallen received goods costing $15,000 on January 2. The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count. 4. Fallen sold goods costing $41,000 to Benet of Canada FOB destination on December 30. The goods…

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