2Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emmalooks over her inventory and finds1,500 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 basementAdd:Units on consignmentUnits in transitLess:Damaged unitsTotal units in period-end inventory1,500 units1,30035080:3,070 units

Inventory at the end of financial year to be shown in balance sheet , should means the inventory ,…

Answered: Homestead Crafts, a distributor of…

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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Akber Departmental Store (ADS) has applied for a loan to Almezaan bank. Before sanctioning loan, the bank decided that further discussion with the accountant of Akber Departmental Store is desirable. One area of particular concern is the inventory account, which has a year-end balance of OMR 76,000. Discussions with the accountant reveal the following. (a) Akber Departmental Store (ADS) sold goods costing OMR8,000 to Bingo Company, FOB destination, on December 28. The goods are not expected to arrive at Bingo Company until January 12. The goods were not included in the physical inventory because they were not in the warehouse. (b) The physical count of the inventory did not include goods costing OMR5,000 that were shipped to Akber Departmental Store (ADS) FOB shipping point on December 27 and were still in transit at year-end. (c) Akber Departmental store received goods costing OMR2,000 on January 2. The goods were shipped FOB destination on December 26 by Jalal Co. The goods were…
Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $450,000 on credit. On August 15, Paige paid Lindley in full on its $450,000 balance.
State College Technology Store is a retial computer store in the university center of a large midwestern university. The school engaged in the following transactions during January of the current year. At December 31 last year, the company’s inventory amounted to $150000. Jan. 8 Purchased 20 Nonpxe laptop computers on account from Led Inc. The laptop comptuers cost $800 each. Payment is due in 30 days Jan. 10 Sold 4 Nopxe laptop computers on account to the Department of Microbiology at State College at a retail sales price of $1200. Unit cost of each laptop was $1000. a) Prepare journal entries to record these transactions assumingthat the company uses periodic inventory system b. Compute the balance of the Inventory account on January 12 assuming that the company uses periodic inventory system. c. Compute the cost of goods sold assuming use of periodic inventory system. d. To create year-end blance for cost of goods sold, please close the beginning…
Please see below. I need to make sure that what I have included details 2 accrual and 2 deferral transactions correctly. Please let me know if I need to correct something.
Hello can you please help with the attached question, thanks much.
Sandy Chen owns a small specialty store, named Chen's Chattel, whose year-end is June 30. A physical inventory taken on June 30 reveals the following: Cost of merchandise on the showroom floor and in the warehouse $38,300 Goods held on consignment (consignor is National Manufacturer) 6,400 Goods that Chen's Chattel, as the consignor, has for sale at the location of the Grand Avenue Vista 4,600 Sales invoices indicate that merchandise was shipped on June 29, terms FOB shipping point, delivered at buyer's receiving dock on July 3 3,800 Sales invoices indicate that merchandise was shipped on June 25, terms FOB destination, delivered at buyer's receiving dock on July 5 3,100 Determine the total amount that should be included in Chen's Chattel's year-end inventory.
Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for $5,000 for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandise. Illustrate the effects on the accounts and financial statements of Butler Co. 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. a. The purchase. Financial Statement Effects DE PA Assets + Statement of Cash Flows Balance Sheet Liabilities + Stockholders' Equity Income Statement
Marsha’s Pet Store employs six employees. Their duties are to sell pets, replenish the stock, keep the pets’ cages clean, feed the pets, and maintain good records. Marsha pays a fixed hourly rate and a commission on sales of pets. Lately, Marsha has been finding that the records have not been well maintained and the stock has not been replenished. However, pet sales are good and the pets’ cages are clean. Is Marsha’s current reward structure motivating the employees to pay more attention to the pets than to their other duties? multiple choice True False
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The Branch of the Company is billed for merchandise by the home office at 20% above cost. The branch in turn, prices merchandise for sales purposes at 25% above billed price. On February 28, all of the branch merchandise is destroyed by flood. No insurance was maintained. Branch accounts show the following information (see image below). What was the cost of merchandise destroyed by the flood?
Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $400,000 on credit. On August 15, Paige paid Lindley in full on its $400,000 balance. Prepare the related journal entries for Lindley.
N2.

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