Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 f shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase. b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset + ÷ + + 0 Noncash Asset + ♦ ÷ + 0 Balance Sheet Liabilities + + + ÷ 0 Contributed + Capital + Earned Capital + + → 0 Revenues. Income Statement Expenses + + + → 0 Net ■ Income 0

Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 f shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase. b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset + ÷ + + 0 Noncash Asset + ♦ ÷ + 0 Balance Sheet Liabilities + + + ÷ 0 Contributed + Capital + Earned Capital + + → 0 Revenues. Income Statement Expenses + + + → 0 Net ■ Income 0

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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Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Blossom Co. at a total cost of $1,600, terms n/30. 9 Paid freight of $40 on calculators purchased from Blossom Co. 10 Returned calculators to Blossom Co. for $50 credit because they did not meet specifications. 12 Sold calculators costing $450 for $600 to Fryer Book Store, terms n/30. 14 Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $25. 20 Sold calculators costing $500 for $650 to Heasley Card Shop, terms n/30. Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries…
[The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $16,000. The following inventory transactions occurred during the month: The company purchased inventory on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $510 were paid in cash. On October 31, Autumn paid for the inventory purchased on October 12. During October inventory costing $18,150 was sold on account for $28,200. It was determined that inventory on hand at the end of October cost $21,390 2. Assuming Autumn Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. Autumn considers purchase discounts lost as part of interest expense. a. The company purchased inventory on account for $23,500 on…
A company purchased $11,600 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,300, was added to the invoice amount. On June 20, it returned $2,080 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals: Multiple Choice $9,224. $12,280. $12,900. $12,380. $10,534.
Questions # 21-23 are based on the information below: Wicker Inc. has the following transactions during March: March 3 March 5 March 6 March 12 March 29 Purchases inventory on account for $3,500, terms 2/10, n/30. Pays freight costs of $200 on inventory purchased on March 3. Returns inventory with a cost of $500. A. $60 B. $70 C. $56 D. $84 Pays the full amount due to supplier. Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account. 21. On March 12, how much is the purchase discount? 22. How much cash does Wicker pay to the supplier on March 12? A. $2,936 B. $2,930 C. $2,940 D. $3,000 23. How much will Wicker record as cost of goods sold on March 30? A. $5,000 B. $3,000 C. $3,200 D. $3,140
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Check During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of events w follows: 6 Purchased goods for $2,9ee from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $2,260 with terms 2/10, n/30 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $690 from Reynolds with terms 2/10, n/45 Jan. Required: Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Purchases Less: Purchase discount from Green 58 Cost of inventory as of February 28 $ 2,E
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The amount of the cash paid on July 28 equals: $200. $1,564. $1,568. $1,600. $1,800.
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On October 23, Johnson Company purchased $100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnson Company's purchases if it pays on October 31.View Solution:
At the end of October, the ABC Company needed to make accrual adjustments to the accounts, using the following information: Depreciation for the month is £50 An inventory count on October 31 revealed that 125units were in the company’s warehouse. The cost flow assumption followed for the preparation of statements is FIFO. On September 1, ABC Company issued a 3-month, annual rate 6%, $1,000 Note Payable to Credit Bank. Capital and interest are to be paid at the end of November. Prepare a worksheet showing the October transactions and the October accrual adjustments for the ABC Company. The work sheet is attached below, which is solvevd. But I wonder how to get the lastest amount of inventory, which is 125? Can you please show me the calculation process?
[The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $30,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $44,500 on October 12. Terms of the purchase were 2/10, n/30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $650 were paid in cash. . b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $20,250 was sold on account for $31,000. d. It was determined that inventory on hand at the end of October cost $54,010. Problem 8-1 (Algo) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
On October 31, Janoch's Dog Kennel purchased $700of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $70 was paid by Ganster Company and added to the invoice. The amount to record in the Merchandise Inventory account is: A. $700. B. $770. C. $620. D. $630.