QUESTION:ON NOVEMBER 21, 2016, A FIRE AT HODGECOMPANY'S WAREHOUSE CAUSED SEVEREDAMAGE TO ITS ENTIRE INVENTORY OF PRODUCTTEX. HODGE ESTIMATES THAT ALL USABLEDAMAGED GOODS CAN BE SOLD FOR $17,000.THE FOLLOWING INFORMATION WAS AVAILABLEFROM THE RECORDS OF HODGE'S PERIODICINVENTORY SYSTEM: INVENTORY, NOVEMBER 1$ 125,000 NET PURCHASES FROM NOVEMBER1, TO THE DATE OF THE FIRE 145,000 NETSALES FROM NOVEMBER 1, TO THE DATE OF THEFIRE 225,000 BASED ON RECENT HISTORY,HODGE'S GROSS PROFIT RATIO ON PRODUCT TEXIS 40% OF NET SALES.REQUIRED: CALCULATE THE ESTIMATED LOSS ONTHE INVENTORY FROM THE FIRE, USING THEGROSS PROFIT METHOD.

We have given, Net sales = $225,000Net purchase = $145,000Beginning inventory = $125,000Value of…

Answered: QUESTION: ON NOVEMBER 21, 2016, A FIRE…

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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Instructions Long Horn Music Store uses a perpetual inventory system and had the following transactions during July. 1 Sold merchandise on account for $1,475. The cost of inventory sold was $785. 4 Purchased $1,500 of inventory, paying $1,000 cash with the remainder on account. 7 Sold equipment that cost $1,900 for $2,300. The equipment was fully depreciated and had no salvage value. 10 Paid wages of $1,250 and salaries of $3,250. Neither had been previously accrued. 12 Sold merchandise for $4,450 cash and for $3,250 on account. The cost of inventory sold was $4,050. 18 Purchased new equipment for $3,780, paying $1,780 cash and signing a 90-day note for the remainder. 24 Sold merchandise for $1,235 cash. The cost of inventory sold was $650. Paid wages of $1,470 and salaries of $3,250. Neither had been previously accrued. 29 Paid the July 4 invoice on account. Required: Record the preceding transactions in a general journal. Chart of Accounts
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On April 30, 2020, a fire damaged the office of Waterloo 1. What is the total amount of sales up to April 30? Problem 13-15 (AICPA Adapted) & 4,200,000 b. 4,220,000 c. 4,140,000 d. 4,160,000 What is the total amount of purchases up to April 30? Company. on March 31, 2020: Accounts receivable Inventory - January1 Accounts payable Sales Purchases 920,000 1,880,000 950,000 3,600,000 1,680,000 • An examination of the April bank statement and canceled checks revealed checks written during the period April 1-3 a. 1,760,000 b. 2,100,000 c. 2,020,000 d. 1,680,000 Accounts payable as of March 31 April merchandise shipments Expenses 240,000 80,000 160,000 3 What is the inventory on April 30? Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refund from a vendor for merchåndise returned in April. a. 1,476,000 b. 1,464,000 1,440,000 d. 1,428,000 ( What is the fire loss to be recognized on April 30? Customers…
7. The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records:
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