### Honest Tea, Inc. - Inventory Balance Calculation**Scenario Overview:**Honest Tea, Inc. is a merchandiser. The following financial details are provided to determine the inventory balance on the December 31 year-end balance sheet. Note that all purchases of inventory are on account.**Given Information:**| **Description** | **Amount** ||-------------------------------------------------|--------------|| Cost of Goods Sold during the year | $34,000 || January 1 Inventory | $10,000 || Sales during the year | $77,000 || December 31 Accounts Receivable | $24,000 || Purchases of Inventory on Account during the year | $35,000 || December 31 Inventory | $______ |**How to Calculate the December 31 Inventory:**1. **Start with the Beginning Inventory (January 1):** This is the inventory amount at the beginning of the year.2. **Add Purchases of Inventory:** This includes all purchases made during the year.3. **Subtract Cost of Goods Sold:** This represents the cost associated with the goods that were sold during the year.**Formula:**\[ \text{December 31 Inventory} = \text{January 1 Inventory} + \text{Purchases of Inventory} - \text{Cost of Goods Sold} \]**Calculation Steps:**1. Beginning Inventory (January 1): $10,0002. Add Purchases during the year: $35,0003. Subtotal: $10,000 + $35,000 = $45,0004. Subtract Cost of Goods Sold: $45,000 - $34,000 = $11,000**Conclusion:**The December 31 Inventory for Honest Tea, Inc. is **$11,000**.

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Description: ### Honest Tea, Inc. - Inventory Balance Calculation**Scenario Overview:**Honest Tea, Inc. is a merchandiser. The following financial details are provided to determine the inventory balance on the December 31 year-end balance sheet. Note that all pu

Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

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Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its December 31 year-end balance sheet. Note: All purchases of inventory are on account. Cost of Goods Sold during the year January 1 Inventory Sales during the year December 31 Accounts Receivable Purchases of Inventory on Account during the year December 31 Inventory = $. $34,000 10,000 77,000 24,000 35,000

Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its December 31 year-end balance sheet. Note: All purchases of inventory are on account. Cost of Goods Sold during the year January 1 Inventory Sales during the year December 31 Accounts Receivable Purchases of Inventory on Account during the year December 31 Inventory = $. $34,000 10,000 77,000 24,000 35,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...

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ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Sandra Owens owns a business called Sandras Sporting Goods. Her beginning inventory as of January 1, 20--, was 33,000, and her ending inventory as of December 31, 20--, was S36,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
Required information Skip to question [The following information applies to the questions displayed below.] Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory $ 45,800 Sales returns and allowances $ 4,900 T. Nix, Capital 131,300 Cost of goods sold 109,800 T. Nix, Withdrawals 7,000 Depreciation expense 11,900 Sales 162,600 Salaries expense 40,500 Sales discounts 4,500 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.)
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! Required information [The following information applies to the questions displayed below.] Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 43,800 127,300 7,000 160, 600 4,100 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses Prepare the entry to record any inventory shrinkage. $ 5,300 108,600 11,500 38,500 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $42,050.
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Current Attempt in Progress Prepare the necessary journal entries to record the following transactions, assuming Cullumber Company uses a perpetual inventory system. (a) Cullumber sells $57,500 of merchandise, terms 1/10, n/30. The merchandise cost $39,220. (b) The customer in (a) returned $5,300 of merchandise to Cullumber. The merchandise returned cost $3,710. (c) Cullumber received the balance due within the discount period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Transactions Account Titles and Explanation (a) (To record credit sale.) (To record cost of goods sold.) Debit Credit SU
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Topic: SINGLE-ENTRY BOOKKEEPING HALSEY Company suspects that there is missing inventory in its warehouse at December 31, 2021. All sales and purchases were made on account. Also, the gross profit rate based on net sales is consistent every year. To aid in your investigation, you obtained the following: How much is the net sales revenue for the year?