On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroyingall its inventory. The following information is presented for 2020:January 1December31InventoryAccounts ReceivableAccounts PayableCollection on accountsP 750,000510,000350,000P 490,000590,0003,100,000receivablePayment to suppliersGoods out on consignment at sales priceSalvage value of inventory1,950,000310,00045,0002019P3,000,0001,200,00020182017SalesGross ProfitP2,750,000 P2,100,0001,045,000756,000Requirements: Compute the following on December 31, 20201. Purchases2. Sales3. Inventory Loss

Name: On December 31, 2020, a fire broke out in the warehouse of Cialete Co
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroyingall its inventory. The following information is presented for 2020:January 1December31InventoryAccounts ReceivableAccounts PayableCollection on accountsP 750,00051

An income statement is known by different names as a ‘profit and loss statement’, or “earnings…

Business

Accounting

On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its inventory. The following information is presented for 2020: December 31 January 1 P 750,000 510,000 350,000 Inventory Accounts Receivable Accounts Payable Collection on accounts receivable Payment to suppliers Goods out on consignment at sales price Salvage value of inventory P 490,000 590,000 3,100,000 1,950,000 310,000 45,000 2019 2018 2017 Sales Gross Profit P3,000,000 1,200,000 P2,750,000 P2,100,000 1,045,000 756,000 Requirements: Compute the following on December 31, 2020 1. Purchases 2. Sales 3. Inventory Loss

On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its inventory. The following information is presented for 2020: December 31 January 1 P 750,000 510,000 350,000 Inventory Accounts Receivable Accounts Payable Collection on accounts receivable Payment to suppliers Goods out on consignment at sales price Salvage value of inventory P 490,000 590,000 3,100,000 1,950,000 310,000 45,000 2019 2018 2017 Sales Gross Profit P3,000,000 1,200,000 P2,750,000 P2,100,000 1,045,000 756,000 Requirements: Compute the following on December 31, 2020 1. Purchases 2. Sales 3. Inventory Loss

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

ASAP!! The merchandise inventory of Ayan & Co. was destroyed by fire on 4th May 2021. The following data were obtained from the accounting record: Opening Inventory 1,120,000 Purchases 1,056,000 Purchases Returned & Allowance 52,000 Sales 2,870,000 Sales Return & Allowance 8,000 Estimated Gross Profit Rate 41% Required Compute the estimated cost of merchandise inventory destroyed by fire
Current Attem As a result of a thorough physical inventory, Bramble Company determined that it had inventory of $144000 at December 31, 2025. This count did not take into consideration the following transactions: Ayayai Consignment store currently has goods with a cost of $28000 on its sales floor that belong to Bramble but are being sold on consignment by Ayayai. The selling price of these goods is $40000. Bramble purchased $10400 of goods that were shipped on December 27, FOB destination, that will be received by Bramble on January 3. Determine the correct amount of inventory that Bramble should report. O $154400 O $172000 O $182400 O $184000
Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020. Twelve months ended March 31 2019 2020 Beginning inventory 31,000 27,000 Plus: Purchases 185,000 188,000 Goods available for sale 216,000 215,000 Less: Ending inventory 27,000 30,000 Cost of goods sold 189,000 185,000 The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000. Once the error is corrected what will be the restated cost of goods sold figure for 2019? Once the error is corrected what will be the restated cost of goods sold figure for 2020? . Was net income in 2019 overstated, understated or not affected by the inventory error? Was net income in 2020 overstated, understated or not affected by the inventory error?
Hi Please help with question attached, thanks so much.
The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $95,000. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,200, freight costs $200. 2. Goods out on consignment to Marlman Company, sales price $5,600, shipping costs of $200. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver. Determine the cost of the ending inventory that Reddall should report on its December 31, 2019, balance sheet, assuming that its selling price is 140% of the cost of the inventory.
16.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's markup on cost is 40%. The following information was obtained from the available records:Inventory, 12/31/2020 - P600,000Sales for the 1st quarter - P2,240,000Purchases for the 1st quarter - P1,750,000What is the cost of inventory immediately before the fire?
A fire destroys all of the merchandise -4 of A Company on January , 2020. Presented Below is information compiled up to the date of the fire: Inventory, January 1, $ 400,000, Sales $1,750,000, Purchases $1,140,000, Freight-in $60,000. Rate of gross profit on selling price 40%. the inventory on ..... January 31, 2020
Fire occurred at the factory of Burny Corporation on February 16, 2020 which damaged its merchandise inventory. You were given the following data: Inventory, January 1, 2010 P 400,000, Sales (including sales delivered still in transit FOB shipping point, P 50,000) P980,000, Purchases (including those still in transit, Shipped FOB shipping point P 40,000, Shipped FOB destination, P35,000) P700,000. The merchandise saved from fire was estimated to be P 8,500. Burny Corporation’s policy is to add 40% on its cost. Compute for the estimated value of inventory damaged by fire.
Required: How much is the inventory loss due to fire?
Question: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2016. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2016 $2,090,000 Purchases to date Freight-in Sales to date 5,990,000 590,000 10,100,000 The gross profit ratio has averaged 30% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
The World Company's financial statements for 2019 and 2020 contain the following errors: 2020 2019 ending inventory $6,000 overstated $16,000 overstated insurance expense $4,000 understated $12,000 overstated If World Company uses the periodic inventory system and the proper correcting entries were made For other accounts, how much will 2020 operating income be overstated or understated? O $10,000 understated O $6,000 overstated O $10,000 overstated $6,000 understated
Required: calculate the estimated loss on the inventory