Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax was not included in price. Each unit of XOM had cost company $10.40. Provide the necessary journal entry to record the transaction.
- Refer to the above transaction. Shaw paid Reynold Company in full within discount period. Provide the necessary
journal entry to record the transaction.
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Credit |
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- Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax was not included in price. Each unit of XOM had cost company $10.40. Provide the necessary journal entry to record the transaction.
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Debit |
Credit |
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- The following information pertains merchandise inventory of Bloom Company at the end of year.Apply Lower of Cost or Market rule and provide the necessary
adjusting entry for adjustment of inventory account balance in the space provided on the Answer Sheets.
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Item |
Quantity on hand |
Unit Cost |
Selling Price |
Replacement Cost |
Net Realizable Value (Ceiling Price) |
Net Realizable Value Less Normal Profit (Floor Price) |
LCM |
|
Zoom |
300 |
$90 |
$120 |
$105 |
$100 |
$75 |
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Zap |
600 |
$60 |
$65 |
$45 |
$60 |
$55 |
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Debit |
Credit |
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- Provide journal entries as of December 31, 2019 to close merchandise accounts.
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Debit |
Credit |
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Sales
Income Summary
Cost of Goods Sold Fire Loss
Inventory Purchases
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1,500,000
980,000 170,000
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1,500,000
170,000 980,000 |
- When you undertook the preparation of the financial statements for Telfer Company at January 31, 2021, the following data were available:
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At Cost |
At Retail |
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Inventory, February 1, 2020 |
$70,800 |
$98,500 |
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Markdowns |
35,000 |
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Markups |
63,000 |
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Markdown cancellations |
20,000 |
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Markup cancellations |
10,000 |
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Purchases |
219,500 |
294,000 |
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Sales revenue |
335,000 |
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Purchases returns and allowances |
4,300 |
5,500 |
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Sales returns and allowances |
10,000 |
Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.
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