some expert tutor answer this query asap for both Neighbourhood Electronics runs a small storecarrying four items of inventory. At the endof its fiscal year, the physical stock take,their book value, and the market(replacement) price were compiled.UnitsBook costMarket priceCell phones128$ 85$ 66Android Tablets765460Kindles47105108Chrome books246361The company's policy is to record closinginventory at a lower cost or market value,using individual valuation.What correcting entries will this companymake at the fiscal year end?

the correcting entries that Neighbourhood Electronics should make at the end of the fiscal year, we…

Answered: Neighbourhood Electronics runs a small…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

See similar textbooks

Similar questions

Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.
Westcoast Purveyors had 343 computer system in stock at the end of the year. Inventory records show the following information: *Chart Attached* A): Using the LIFO method of inventory pricing, calculate the dollar value of the ending inventory. $ B): Use the lower-of-cost-or-market rule to determine the value (in $) of the following inventory for Save-Mor Merchandisers. *Chart attached*
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of ProductEF5089 and information about purchases and sales made during June are shown in the picture.Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST. Please answer:a) Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown in the image. Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales on credit,Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST.Required:a) Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $35,000 in inventory. During the quarter, the company purchased, $8,650 of new inventory from a vendor, returned $1,200 of inventory to the vendor, and took advantage of discounts from the vendor of $250. At the end of the quarter, the balance in inventory is $29,000 What is the cost of goods sold? A. $6,000 B. $14,650 C. $14,650 D. $13,200 E. $15,150
The Sherri’s Retail Shop uses the FIFO retail inventory method to determine its ending inventory. The accounting records for the current year for Sherri’s contained the following information: Cost Retail Purchases $225,000 $362,250 Beginning inventory 55,000 73,000 Sales 385,750 Net markups 32,500 Net markdowns 19,750 Employee discounts 12,500 What is the cost-to-retail percentage to be used for ending inventory calculations? a. 59.9% b. 60.0% c. 62.1% d. 62.5%
Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current year, Vargas purchased 400 units of inventory that cost $15.00 each. At a later date during the year, the company purchased an additional 800 units of inventory that cost $18.00 each. Vargas sold 500 units of inventory for $27.00. What is the amount of cost of goods sold that will appear on the current year's income statement? Multiple Choice ο ο ο ο $4,500 $6,000 $7,800 $5,700
Jonas Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sales follow: ENDING INVENTORY, CURRENT YEAR Ite Quantity on Unit Cost When m Hand Acquired (FIFO) Net Realizable Value (Market) at Year-End A 60 $25 $ 22 B 90 40 60 0 20 58 62 D 80 35 40 E 360 20 15 Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by-item basis. Item Quantity Total Cost Total Market LCM Valuation A 60 60 B 90 0 20 D 80 E 360 Total
On January 1, 2016, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Account- ing records provided the following information: Retail Cost $ 40,800 $ 68,000 270,000 6,000 8,000 250,000 Beginning inventory Net purchases Net markups Net markdowns 155,440 Net sales Retail price index, end of year 1.02 Calculate the inventory value at the end of the year using the dollar-value LIFO retail method.
What is the proper journal entry, and what is the increase in Cost of Goods Sold, the decrease in Income Before Income Taxes, and the decrease in Income After Taxes?
What is the correct journal entry, and the empty cells there?
Morse Inc. is a retail company that uses the perpetual inventory method. Assume that there are no credit transactions and all amounts are settled in cash. Calculate the ending inventory for the following cost flow assumption: LIFO. You have the following information for Morse Inc. for the month of January 2014. Unit Cost or Date Description Quantity Selling Price Dec. 31 Ending inventory 140 $ 14 Jan. 2 Purchase 120 15 Jan. 6 Sale 150 30 Jan. 9 Purchase 85 17 Jan. 10 Sale 70 35 Jan. 23 Purchase 100 20 Jan. 30 Sale 110 42

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS