Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow:DEF Corp.(550,000)380,000B BranchSales(310,000)Purchases50,000Expenses104,00058,100Beg. Inventory46,000116,60023,100Branch CurrentShipment from Home OfficeFreight inHome Office CurrentShipment to branchBranch merchandise markup209,00015,00011,000(106,600)(200,000)(22,000)As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, isalways 5% of the billing price. Merchandise on hand at year-end were: at home office , P64,000 at cost; at branchP33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.

Name: Selected accounts from the December 31, 2021 trial balances of DEF Co
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Description: Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow:DEF Corp.(550,000)380,000B BranchSales(310,000)Purchases50,000Expenses104,00058,100Beg. Inventory46,000116,60023,100Branch CurrentShipment from Home Offic

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Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow: B Branch (310,000) 50,000 58,100 DEF Corp. Sales (550,000) Purchases Expenses 380,000 104,000 Beg. Inventory Branch Current 46,000 116,600 23,100 Shipment from Home Office 209,000 Freight in 15,000 11,000 Home Office Current (106,600) Shipment to branch (200,000) (22,000) Branch merchandise markup As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, is always 5% of the billing price. Merchandise on hand at year-end were: at home office, P64,000 at cost; at branch P33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.

Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow: B Branch (310,000) 50,000 58,100 DEF Corp. Sales (550,000) Purchases Expenses 380,000 104,000 Beg. Inventory Branch Current 46,000 116,600 23,100 Shipment from Home Office 209,000 Freight in 15,000 11,000 Home Office Current (106,600) Shipment to branch (200,000) (22,000) Branch merchandise markup As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, is always 5% of the billing price. Merchandise on hand at year-end were: at home office, P64,000 at cost; at branch P33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow:
DEF Corp.
(550,000)
380,000
B Branch
Sales
(310,000)
Purchases
50,000
Expenses
104,000
58,100
Beg. Inventory
46,000
116,600
23,100
Branch Current
Shipment from Home Office
Freight in
Home Office Current
Shipment to branch
Branch merchandise markup
209,000
15,000
11,000
(106,600)
(200,000)
(22,000)
As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, is
always 5% of the billing price. Merchandise on hand at year-end were: at home office , P64,000 at cost; at branch
P33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.

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Part 1: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable-Avery & Wiest. June 1 Sold merchandise to Avery & Wiest for $9,550; terms 2/5, n/15, FOB destination (cost of sales $6,700). 2 Purchased $4,950 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point. 4 Purchased merchandise inventory from Bastille Sales for $11,500; terms 3/15, n/45, FOB Bastille Sales. 5 Sold merchandise to Gelgar for $11,100; terms 1/5, n/15, FOB destination (cost of sales $7,750). 6 Collected the amount owing from Avery & Wiest regarding the June 1 sale. 12 Paid Angolac Suppliers for the June 2 purchase. 20 Collected the amount owing from Gelgar regarding the June 5 sale. 30 Paid Bastille Sales for the June 4 purchase. Prepare General Journal entries to record the above transactions. View transaction list Prepare General Journal entries…
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Part 1: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable-Avery & Wiest. June 1 Sold merchandise to Avery & Wiest for $9,450; terms 2/5, n/15, FOB destination (cost of sales $6,600). 2 Purchased $4,850 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point. 4 Purchased merchandise inventory from Bastille Sales for $11,300; terms 2/15, n/45, FOB Bastille Sales. 5 Sold merchandise to Gelgar for $10,900; terms 3/5, n/15, FOB destination (cost of sales $7,650). 6 Collected the amount owing from Avery & Wiest regarding the June 1 sale. 12 Paid Angolac Suppliers for the June 2 purchase. 20 Collected the amount owing from Gelgar regarding the June 5 sale.. 30 Paid Bastille Sales for the June 4 purchase. Prepare General Journal entries to record the above transactions.