SG Corporation started operating a branch on May 1, 2020 with a shipment of merchandise billed at P250,000. Additional shipments during the month were billed at P125,000. The branch returned damaged merchandise worth P10,000. Inter-office shipments are billed uniformly at 125% of cost. On May 31, 2020, the branch reported a net loss of P52,500 and an inventory of P150,000. What is the branch net income (loss) reflected in the combined income statement for May 2020?

SG Corporation started operating a branch on May 1, 2020 with a shipment of merchandise billed at P250,000. Additional shipments during the month were billed at P125,000. The branch returned damaged merchandise worth P10,000. Inter-office shipments are billed uniformly at 125% of cost. On May 31, 2020, the branch reported a net loss of P52,500 and an inventory of P150,000. What is the branch net income (loss) reflected in the combined income statement for May 2020?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
On December 2023, the home office of Rada Company recorded a shipment of merchandise to its Calamba branch as follows:Calamba branch 30,000 Shipment to Calamba Branch 25,000 Unrealized profit in branch inventory 4,000 Cash (freight charges) 1,000The Calamba branch sells 40% of the merchandise to outside entities during the rest of December 2023. The books of the home office and Calamba branch are closed on December 31 of each year. At what amount should the 60% of the merchandise remaining unsold at December 31, 2023 should be included in the published statement of financial position of Rada Company at December 31, 2023?
Bayabas Company started operations on January 1, 2021. Following data are available as of June 30, 2021: Purchase of merchandise - P9,000,000; Inventory, June 30, 2021 – P1,500,000; Goods were sold at 50% above cost; 75% of sales were on credit; Estimated bad debts – 1% of credit sales; Collections from charge customers – P6,300,000; Allowance for doubtful accounts, June 30, 2021, after write-off of uncollectible accounts – P78,075. What is the outstanding accounts receivable on June 30, 2021?
Bayabas Company started operations on January 1, 2021. Following data are available as of June 30, 2021: Purchase of merchandise - P9,000,000; Inventory, June 30, 2021 – P1,500,000; Goods were sold at 50% above cost; 75% of sales were on credit; Estimated bad debts – 1% of credit sales; Collections from charge customers – P6,300,000; Allowance for doubtful accounts, June 30, 2021, after write-off of uncollectible accounts – P78,075. What is the outstanding accounts receivable on June 30, 2021? A. P2,200,000 B. P2,137,500 C. P2,131,200 D. Answer not given
Mouse Co. started operations on January 1, 2021. Following data are available as of June 30, 2021: Purchase of merchandise - P9,000,000 Inventory, June 30, 2021 – P1,500,000 Goods were sold at 50% above cost 75% of sales were on credit Estimated bad debts – 19% of credit sales Collections from charge customers – P6,300,000 Allowance for doubtful accounts, June 30, 2021, after write-off of uncollectible accounts - P78,075. What is the outstanding accounts receivable on June 30, 2021?
Cinnamon Buns Co. (CBC) started 2021 with $53,900 of merchandise on hand. During 2021, $288,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $10,900. Merchandise with an invoice amount of $3,000 was returned for credit. Cost of goods sold for the year was $302,000. CBC uses a perpetual inventory system.Assuming CBC uses the gross method to record purchases, ending inventory would be:
On December 31, 2022, the home office of ABC Company recorded a shipment of merchandise to its Manila branch as follows: Manila Branch P30,000 Shipments to Manila Branch (25,000) Unrealized profit in Manila Branch Inventory (4,000) Cash (for freight charges) (1,000) The Manila branch sells 40% of the merchandise to outside entities during the rest of December 31, 2022. The book of the home office and ABC branches are closed on December 31 of each year. On January 5, 2023, the Manila branch transfers half of the original shipments to the Makati branch, and the Manila branch pays P500 freight on the shipment. Shipments directly to the Makati branch for the same shipment size is at P1,500. How much is the loss on excess freight to be recognized in 2023? How much is the inventory to be presented in the separate books of the branch as of December 31, 2022?
Shown below are selected 2020 account balances (before adjustments) taken from the books of SINO Corporation: Sales salaries and commissions 70,000 32,180 Advertising expense Legal services Insurance and licenses Salesmen's traveling expense Depreciation expense - delivery equipment Depreciation expense - office equipment 4,450 17,000 7,120 12,200 9,600 1,400 12,800 2,950 4,360 4,400 66,000 14,300 9,040 Interest income Utilities Telephone and postage Supplies inventory Miscellaneous selling expenses Dividends Dividend income Interest expense Allowance for doubtful accounts (credit balance) Officers' salaries Sales 740 73,200 990,400 Sales returns and allowances 22,400 1,760 32,000 179,400 41,100 345,000 11,000 525,000 145,000 78,000 881,000 Sales discounts Gain on sale of equipment Inventory, January 1, 2020 Inventory, December 31, 2020 Purchases Freight in Accounts receivable Extraordinary loss before income tax Ordinary share capital Retained earnings, January 1, 2020
Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch has a balance in its Home Office account at the end of the year, after closing, of P765,000. Branch income has not been recorded by Oro's home office. During the year, Oro shipped inventory to the branch at a price of P160,000; Oro's original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated parties by year-end. What is the balance in Oro's Investment in Branch account? Select one: P594,500 P635,000 P765,000 P603,500
Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2020. The branch has a balance in its Home Office account the year-end, after closing of P765,000. Branch income has not been recorded by Oro's home office. During the year, Oro shipped inventory to the branch at a price of P160,000: Oro's original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated parties by year-end. How much is the adjusted branch income