Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma looks over her inventory and finds that she has • 1,700 units (products) in her basement, 16 of which were damaged by water and cannot be sold. • 190 units in her van, ready to deliver per a customer order, terms FOB destination. • 110 units out on consignment to a friend who owns a retail store. How many total units should Emma include in her company's period-end inventory? Units in Ending Inventory: Units stored in basement 1,700 units Add: Less: Total units in period-end inventory units

Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma looks over her inventory and finds that she has • 1,700 units (products) in her basement, 16 of which were damaged by water and cannot be sold. • 190 units in her van, ready to deliver per a customer order, terms FOB destination. • 110 units out on consignment to a friend who owns a retail store. How many total units should Emma include in her company's period-end inventory? Units in Ending Inventory: Units stored in basement 1,700 units Add: Less: Total units in period-end inventory units

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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During the current year, Paul, the vice president of a bank, made gifts in the following amounts. To Sarah (Paul's personal assistant) at Christmas $39 To Darryl (a key client)-$3 was for gift wrapping 42 To Darryl's wife (a homemaker) on her birthday 14 To Veronica (Paul's boss) at Christmas 75 In addition, on professional assistants' day, Paul takes Sarah to lunch at a cost of $50. Presuming that Paul has adequate substantiation and is not reimbursed, how much can he deduct? Do not round intermediate computations. If required, round your final answer to the nearest cent.
Ethics Case Electronics, Inc. is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular brand of computers on hand for over a year. These computers have not sold and probably will not sell unless they are discounted 60 to 70%. The accountant is carrying them on the books at cost and intends to recognize the loss when they are sold. This way, she can avoid a significant write-down in inventory on the current year’s financial statements. 1. Is the accountant correct in her treatment of the inventory? Why or why not? 2. If the computers cost $1,000 each and their market value is 40% of their cost, journalize the entry necessary for the write-down. 3. In groups of three or four, make a list of reasons why inventories of electronic equipment might have to be written down.
Fred Tang is a property investor. He owns an apartment at Harbord, and a house at Glebe which have been leased to tenants for several years. He also owns land in Shellharbour. Fred received the following amounts in respect of the Harbord and Glebe properties: Receipts Rent Income (net of agent's commission $5,200) $ 64,250 Rent received from the rental bond board, which represented unpaid rent from April 2015 1,640 Water usage component of water rates paid recouped from tenant 1,040 Settlement from a tenant that was held to have breached the terms of the lease. The settlement included $10,400 which was in respect of a garage that had to be completely rebuilt. The balance was unpaid rent 13,400 Deductions Water & Council Rates 3,200 Cleaning of properties after tenants vacated 740 Landscaping at Glebe property 5,000 Building insurance 380 Repairs and Maintenance 4,400 Decline in Value…
Last year, Jose and Josefina Munoz bought a home with a dwelling replacement value of $250,000 and insured it (via an HO-5 policy) for $225,000. The policy reimburses actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a new computer with a current replacement value of $1,500 and an estimated useful life of three years. They also took jewelry valued at $2,500 and a coin collection valued at $1,500. If the Munozs’ policy has a 90 percent co-insurance clause, do they have enough insurance? Assuming a 50 percent coverage C limit, calculate how much the Munoz family would receive if they filed a claim for the stolen items. What advice would you give the Munoz family about their homeowner’s coverage?
2 Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma looks over her inventory and finds 1,500 units (products) in the basement, 22 of which were damaged by water and cannot be sold. 170 units in the van, ready to deliver per a customer order, terms FOB destination. • 180 units out on consignment to a friend who owns a retail store. How many total units should Emma include in the company's period-end inventory? ● ● Units in Ending Inventory: Units stored in basement Add: Units on consignment Units in transit Less: Damaged units Total units in period-end inventory 1,500 units 1,300 350 80: 3,070 units
To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Daun purchased the stereo systems for $260,000 and sold them for $370,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 2 percent of sales. During the year, she paid $4,020 cash to replace a defective tuner. Requireda. Prepare an income statement and statement of cash flows for Daun’s first year of operation. b. Based on the information given, what is Daun’s total warranties liability at the end of the accounting period?
Nancy Houser has a $1,500 overdue debt for medical books and supplies at Ken's Bookstore. She has only $500 in her checking account and doesn't want her parents to know about this debt. Ken's tells her that she may settle the account in one of two ways since she can't pay it all now: 1. Pay $500 now and $1,200 when she completes her residency, two years from today. 2. Pay $2,000 one year after completion of residency, three years from today. Assuming that the cost of money is the only factor in Nancy's decision and that the cost of money to her is 8%, which alternative should she choose?
Bernadette suffers from multiple sclerosis and has great difficulty climbing stairs. Upon the recommendation of her physician, she has an elevator chair-system installed in her personal residence. In connection with the system, Bernadette incurs and pays the following amounts during the current year: Doctor and hospital bills $6,700 Elevator chair-system 19,500 Installation charge for elevator chair-system 1,500 Cost of certified appraisal 500 In addition, Bernadette pays $1,350 for prescribed medicines. The system has an estimated useful life of 25 years. The appraisal was to determine the value of Bernadette's residence with and without the system. The appraisal states that her residence was worth $224,000 before the system was installed and $240,000 after the installation. Bernadette's AGI for the year was $83,000. What is the total of her qualifying medical expenses for 2018?$ What is her medical expense deduction for the current year?$
During the current year, Paul, the vice president of a bank, made gifts in the following amounts: To Sarah (Paul's personal assistant) at Christmas $36 To Darryl (a key client)—$3 was for gift wrapping 53 To Darryl's wife (a homemaker) on her birthday 20 To Veronica (Paul's boss) at Christmas 30 In addition, on professional assistants' day, Paul takes Sarah to lunch at a cost of $82. Presuming that Paul has adequate substantiation and is not reimbursed, how much can he deduct? Do not round intermediate computations. If required, round your final answer to the nearest cent.
Kory operates a sporting goods store. His records indicate that he had sales of $78,000. Customers return $1500 worth of sporting goods because of various defects. His cost of goods sold was $19,000. What is Kory's Schedule C (Form 1040) gross income? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Eva Stone's home in Chicago was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $19,000. The average age of the damaged personal property was 8 years, and its useful life was estimated to be 18 years. What is the maximum amount the insurance company would pay Eva, assuming that it reimburses losses on an actual cash-value basis? Round the answer to the nearest cent.
Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2022. Stanford incurred the following expenses: Total investigation costs related to the restaurant Total investigation costs related to the bakery $42,750 53,300 If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. What is the maximum amount Stanford can deduct in 2022 for investigation expenses?