On January 1 a store had inventory of P55,000. January purchases were P46,000 and January sales were P105,000.  On February 1 a fire destroyed most of the inventory.  The rate of gross profit was 25% of cost.  Merchandise with a selling price of P7,500 remained undamaged after the fire.  Compute the amount of the fire loss, assuming the store had no insurance coverage.

Q: sold $17,790 of merchandise in 20Y5, with the cost of the merchandise totaling $2,250. Fabulous…

A: The Income statement is prepared to find net profits or losses during the period.

Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…

A: A dividend refers to the amount that the shareholders receive from the company in which they have…

Q: Data table Inventory, December 1 Transactions December 1-15: Purchases Purchases discounts Purchase…

A: COGS is an important financial indicator since it has a direct influence on a company's gross…

Q: Klassen Furniture Inc. paid $3,000 for inventory on September 26. By December 31, Klassen determined…

A: Lets understand the basics.As per IAS 2 "Inventory", inventory should be valued at lower of cost or…

Q: 5.1 Calculate: 5.1.1 Cost of the inventory destroyed in the fire. (5) 5.1.2 The amount to be claimed…

A: Amount of COGS  = Amount of sales  - Gross profit 240,000 = [240,000 X 33.33 / 133.33]…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…

Q: Suppose Indianriver.com sells 1,500 books on account for $19 each (cost of these books is $17,100),…

A: Purchase returns - when a person returns the goods after purchases due to damage to goods or…

Q: Sheffield, Inc. has 8 computers which have been part of the inventory for over two years. Each…

A: Cost of computer      =    $550 Selling price             =   $940 Replacement cost =     $350…

Q: When Laura Rapp arrived at her store on the morning of January 29, she found empty shelvesand…

A: Gross profit = 45% * $70000 = $31500 COGS = $70000 -$31500 = $38500 Inventory at the time of theft =…

Q: On April 31 2017 KIFOs store room was destroyed by fire. KIFO requires an estimate of the cost of…

A: Sales given is 1,080,000, using sales calculate the Cost of goods sold. Formula for cost of goods…

Q: Over the past 3 years, the gross profit rate for Jini Company was 30%. Last week a fire destroyed…

A: Inventory destroyed = Beginning inventory + Net purchases - Cost of goods sold Cost of goods sold =…

Q: 4.The following data were available for ABC Stores at Nov. 6, 20X1: Purchases (Jan 1- Nov 5)…

A: 30% of the inventory was lost in the fire Therefore inventory Lost in fire = Closing stock on Nov…

Q: SM’s management has asked you to provide the following information: 1. Number of units on hand,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How much is the loss on fire at Nov 6, 20X1?   a. 3,900 b. 9,150 c. 13,000 d. 30,500

A: Loss on fire :- Inventory on 6th Nov 2021 * 30% Closing inventory on 6th Nov 2021 :- (opening…

Q: Shipments received from home office are billed at 120% of cost.  During the year, the branch…

A: Branch reported a loss based on the cost of billed price it acquired the goods on. True branch…

Q: Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: Gross Profit is profit earned on selling the goods, which is calculated by deducting Cost of goods…

Q: hen Mary Potts arrived at her store on the morning of January 29, she found empty shelves and…

A: The gross profit is calculated as difference between sales and cost of goods sold. The net income is…

Q: Sunland Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: Solution: Introduction: Inventory means goods are available for sale and raw materials used in the…

Q: Bob "Big Bobby" Weinstein Ltd. experienced complete melt-down of all inventory due to a very…

A: Gross profit can be calculated as a percentage on net sales. Otherwise it can be calculated as the…

Q: Rahul

A: To compute the cost of goods destroyed, just please follow the following steps: Step 1: Calculate…

Q: Crane Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand…

A: Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…

Q: Carson's Bakery purchased $40,000 worth of inventory on account from their vendor. The terms were…

A: Amount to be paid = ( Total due - Return ) * ( 1 - Discount rate )

Q: A fre wiped out Paine Paper Company's Inventory The insurance company will accept an estenate using…

A: calculation of cost of ending inventory using retail method Particulars Cost Retail  Beginning…

Q: st was $30,000 on January 1. Its retail value is $42,000. During the year, Bob's Clothing Shop…

A: Using the cost to retail price ratio, the retail method is used to evaluate the value of ending…

Q: A fire wiped out Parvati Paper Company's Inventory. The insurance company will accept an estimate…

A: Ending inventory means the number of units left to be sold at the end of specified period.Ending…

Q: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in…

A: Loss by Fire - Loss by fire or any other natural calamities is an extraordinary loss for the…

Q: Elijah Company uses the conventional retail inventory method to account for inventory. Cost Retail…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: The following information is available from Uranus's records for the nine months ended September 30,…

A: Under Gross Profit method, Cost of goods sold is estimated/ calculated by reducing gross profit…

Q: 10)During the year, Bubba's Sport Shop's merchandise inventory decreased by $50,000. If the…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A:

Q: Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: 1. Cost of Goods Destroyed - Cost of Goods Destroyed by fire is the goods destroyed and reduced from…

Q: Sheridan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: Cost of goods sold:Cost of goods sold (COGS) refers to the direct costs of producing the goods sold…

Q: The following transactions are for Angela’s Disc Golf Emporium: (1) In December, customers…

A: Inventory valuation is estimating the value of inventory in terms of money for a given accounting…

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.