Marigold Limited is trying to determine the value of its ending inventory as of February 28, 2025, the company's year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $46,000. However, she didn't know how to treat the following transactions so she didn't record them. (a1) For each of the transactions below, specify whether the item in question should be included in ending inventory, and if so, at what amount. (If item is not included in the ending inventory, then enter O for the amounts.) (a) (b) (c) On February 26, Marigold shipped to a customer goods costing $640. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2. On February 26, Martine Inc. shipped goods to Marigold FOB destination. The invoice price was $380 plus $15 for freight. The receiving report indicates that the goods were received by Marigold on March 2. Marigold had $350 of inventory at a customer's warehouse "on approval." The customer was going to let Marigold know whether it wanted the merchandise by the end of the week, March Included Not Included $ $ $

Marigold Limited is trying to determine the value of its ending inventory as of February 28, 2025, the company's year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $46,000. However, she didn't know how to treat the following transactions so she didn't record them. (a1) For each of the transactions below, specify whether the item in question should be included in ending inventory, and if so, at what amount. (If item is not included in the ending inventory, then enter O for the amounts.) (a) (b) (c) On February 26, Marigold shipped to a customer goods costing $640. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2. On February 26, Martine Inc. shipped goods to Marigold FOB destination. The invoice price was $380 plus $15 for freight. The receiving report indicates that the goods were received by Marigold on March 2. Marigold had $350 of inventory at a customer's warehouse "on approval." The customer was going to let Marigold know whether it wanted the merchandise by the end of the week, March Included Not Included $ $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On April 10, 2023, a fire damaged the office and warehouse of Sill Company. Most of the accounting records were destroyed, but the following account balances were determined as of March 31, 2023: Sales Revenue (January 1-March 31, 2023), $180,000; Purchases (January 1- March 31, 2023), $94,000. The company's fiscal year ends on December 31. It uses a periodic inventory system. From an analysis of the April bank statement, you discover cancelled checks of $4,200 for cash purchases during the period April 1-10. Deposits during the same period totaled $18,500. Of that amount, 60% were collections on accounts receivable related to sales made in prior periods, and the balance was cash sales. Correspondence with the company's principal suppliers revealed $12,400 of purchases on account from April 1 to April 10. Of that amount, $1,600 was for merchandise in transit on April 10 that was shipped FOB destination. Correspondence with the company's principal customers produced acknowledgments of…
If Soda Popinski's Company's ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?
You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $296,064 was on hand at the start of the year. Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $389,760 Required: b) Assume now that your company uses the perpetualmethod of inventory control, and that your records show that $1,857,990 of inventory (at cost) was sold during the year. What is the adjustment needed to correct the records, given the inventory count in item 3 above?
At the end of 2018, the Biggie Company performed its annual physical inventory count. John Lawrence, themanager in charge of the physical count, was told that an additional $22,000 in inventory that had been sold andwas in transit to the customer should be included in the ending inventory balance. John was of the opinion that themerchandise shipped should be excluded from the ending inventory since Biggie was not in physical possessionof the merchandise.Required:Discuss the situation and indicate why John’s opinion might be incorrect.
As a result of a thorough physical inventory, Ulalam Company determined that it had inventory worth $180,000 at December 31, 2020. This count did not take into consideration the following facts: Miya Consignment store currently has goods worth P35,000 on its sales floor that belong to Ulalam but are being sold on consignment by Miya. The selling price of these goods is $50,000. Ulalam purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Ulalam on January 3. How much is the correct amount of inventory to be reported in Ulalam Company’s statement of financial position?
On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $76500. It is now January 8, 2024, and you have been asked to double-check the year-end inventory listing. J&M uses a perpetual inventory system. Note: Only relevant items are shown on the inventory listing. # 1 2 ... Jen & Mink Clothing, Inventory Listing December 31, 2023 Inventory Number Inventory Description Quantity (units) Unit Cost ($) Total Value ($) 7649 10824 Blue Jackets Black pants 102 304 22 17 2,244 5,168 *** Total Inventory $76,500 The following situations have been brought to your attention: a. On January 3, 2024, J&M received a shipment of 102 blue jackets, for $2,244 (Item #7649). The inventory was purchased December 23, 2023, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing. b. On December 29, 2023, J&M sold scarves (Item # 5566) to a customer with a sale price of $720 and…
Vai
You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. Inventory at 12/31/2022 was understated by $6,400. b. Inventory at 12/31/2023 was overstated by $9,800. c. On 12/31/2023, inventory was purchased for $3,400. The company did not record the purchase until the inventory was paid for early in 2024. At that time, the purchase was recorded by a debit to purchases and a credit to cash. The company uses a periodic inventory system. Required: 1. Assuming that the errors were discovered after the 2023 financial statements were issued, analyze the effect of the errors on 2023 and 2022 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors.
JC Corporation is in the process of adjusting and closing the books and preparing financial statements at the end of the year, December 31, 2014. One item of concern is in the ending inventory of goods on hand. After the count had been completed, additional items not included in the storeroom count were listed for consideration. You are to consider each item and decide whether it should be included in the ending inventory for 2014. Cost Merchandise Inventory Valuation Initial inventory valuation based on a count of all goods on hand only, unless otherwise noted P 200,000 (a) Goods in a back room of the store were not included in the storeroom count at purchase cost. They are damaged and will be disposed of as salvage. P 1,400 (b) Goods shipped on December 30, FOB…