Sage Hill Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $302,500. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Pohl shipped goods costing $60,500 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl FOB destination on December 27 and were still in transit at year-end. Pohl received goods costing $27,500 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. Pohl shipped goods costing $56,100 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pohl's physical inventory. Pohl received goods costing $46,200 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $302,500.
Sage Hill Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $302,500. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Pohl shipped goods costing $60,500 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl FOB destination on December 27 and were still in transit at year-end. Pohl received goods costing $27,500 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. Pohl shipped goods costing $56,100 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pohl's physical inventory. Pohl received goods costing $46,200 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $302,500.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PA: Review the following transactions, and prepare any necessary journal entries for Renovation Goods....
Related questions
Question
Dog
![Sage Hill Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's
accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $302,500.
Discussions with the accountant reveal the following.
1.
2.
3.
4.
5.
Pohl shipped goods costing $60,500 to Hemlock Company FOB shipping point on December 28. The goods are not expected
to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the
warehouse.
The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl FOB destination on
December 27 and were still in transit at year-end.
Pohl received goods costing $27,500 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice
Co. The goods were not included in the physical count.
Pohl shipped goods costing $56,100 to Ehler of Canada FOB destination on December 30. The goods were received in
Canada on January 8. They were not included in Pohl's physical inventory.
Pohl received goods costing $46,200 on January 2 that were shipped FOB destination on December 29. The shipment was a
rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $302,500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18b254ad-58ba-41b7-ae2b-9a10da4b5067%2F106e7cef-6d75-4f1d-b949-c14f45057739%2F5284a5j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sage Hill Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's
accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $302,500.
Discussions with the accountant reveal the following.
1.
2.
3.
4.
5.
Pohl shipped goods costing $60,500 to Hemlock Company FOB shipping point on December 28. The goods are not expected
to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the
warehouse.
The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl FOB destination on
December 27 and were still in transit at year-end.
Pohl received goods costing $27,500 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice
Co. The goods were not included in the physical count.
Pohl shipped goods costing $56,100 to Ehler of Canada FOB destination on December 30. The goods were received in
Canada on January 8. They were not included in Pohl's physical inventory.
Pohl received goods costing $46,200 on January 2 that were shipped FOB destination on December 29. The shipment was a
rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $302,500.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781305084087/9781305084087_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781305084087/9781305084087_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT