Stone Co had the following consignment transactions during December: Inventory shipped on consignment to Beta Co. Freight paid by Stone Inventory received on consignment from Alpha Co. Freight paid by Alpha $18,000 $900 $12,000 $500 No sales of consigned goods were made through December 31. Stone's December 31 balance sheet should include consigned Inventory at: a. $18,000 b. $18,900 c. $12,500 d. $12,000

Stone Co had the following consignment transactions during December: Inventory shipped on consignment to Beta Co. Freight paid by Stone Inventory received on consignment from Alpha Co. Freight paid by Alpha $18,000 $900 $12,000 $500 No sales of consigned goods were made through December 31. Stone's December 31 balance sheet should include consigned Inventory at: a. $18,000 b. $18,900 c. $12,500 d. $12,000

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...

See similar textbooks

Similar questions

Consider the following financial statement information for the Hop Corporation: Item Inventory Accounts Receivable Accounts Payable Net Sale COGS O 13.44 days O 20.83 days What is the payable period for Hop Corporation? O 27.16 days Beginning $16,200 14,000 11,000 O 17.52 days $219,000 168,000 Ending $19,100 16,000 14,000
Presented below is a list of items that may or may not be reported as inventory in a company’s December 31 balance sheet. 1. Goods out on consignment at another company’s store: 800,0002. Goods sold on installment basis: 100,000 3. Goods purchased F.O.B. shipping point that are in transit on December 31: 120,0004. Goods purchased F.O.B. destination that are in transit on December 31: 200,000 5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory: 300,000 How much of these items would typically be reported as inventory in the financial statements? A. 1,520,000 B. 800,000 C. 1,100,000 D. 1,220,000
The unadjusted inventory balance of Conway Corp. is $800,000 on December 31, based on a physical inventory count. Several items must be considered before the inventory valuation 1. On December 31, the physical inventory excluded $ 10,000 of merchandise inventory shipped f.o.b. destination to Conway Corp. from a vendor. The inventory arrived on January 50 2. On December 31, the physical inventory included $1,500 of merchandise held on consignment. The consignor is Packaging Plus Inc. 3. $75,000 of in-transit merchandise was shipped f.o b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor. 5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 and the goods were shipped f.o.b. shipping point on December 26. The merchan…
The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system. July 1 Purchased merchandise from Sabol Imports Co., $13,377, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $230 was added to the invoice. 5 Purchased merchandise from Schnee Co., $14,350, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $5,000 returned from purchase on July 5. 13 Paid Saxon Co. for invoice of July 3. 14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6. 19 Purchased merchandise from Southmont Co., $25,850, terms FOB shipping point, n/eom. 19 Paid freight of $430 on July 19 purchase from Southmont Co. 20 Purchased merchandise from Stevens Co., $23,000, terms FOB destination, 1/10, n/30. 30 Paid…
The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system. July 1 Purchased merchandise from Sabol Imports Co., $13,322, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. 5 Purchased merchandise from Schnee Co., $13,700, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,850 returned from purchase on July 5. 13 Paid Saxon Co. for invoice of July 3. 14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6. 19 Purchased merchandise from Southmont Co., $29,840, terms FOB shipping point, n/eom. 19 Paid freight of $410 on July 19 purchase from Southmont Co. 20 Purchased merchandise from Stevens Co., $22,200, terms FOB destination, 1/10, n/30. 30 Paid…
Assume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that cost $17,900 under terms of 2/10, n/30 and FOB shipping point 2) Green Company paid freight cost of $790 to have the merchandise delivered. 3) Payment was made to the supplier on the inventory within 10 days. 4) All of the merchandise was sold to customers for $27,300 cash and delivered under terms FOB destination with freight cost amounting to $590. What is the amount of gross margin that results from these transactions? Multiple Choice $9,168 $8,968 $8,378 $9,758
The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system. July 1 Purchased merchandise from Sabol Imports Co., $13,725, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,550, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $205 was added to the invoice. 5 Purchased merchandise from Schnee Co., $12,800, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,550 returned from purchase on July 5. 13 Paid Saxon Co. for invoice of July 3. 14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6. 19 Purchased merchandise from Southmont Co., $29,160, terms FOB shipping point, n/eom. 19 Paid freight of $425 on July 19 purchase from Southmont Co. 20 Purchased merchandise from Stevens Co., $22,400, terms FOB destination, 1/10, n/30. 30 Paid…
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. 1 Summit Company sold merchandise on account to Beartooth Co., $49,050, terms FOB destination. 2/15, n/eom. The cost of the goods sold was $28,370. Summit Company paid freight of $1,160 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $68,590, terms FOB shipping.point, Aug. 2 5 n/eom. The cost of the goods sold was $43,250. 9 Beartooth Co. paid freight of $2,440 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $59,500, terms FOB shipping point, n/45. Summit paid freight of $1,755, which was added to the invoice. The cost of the goods sold was $31,720. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a cash refund of $1,100 for…
Seiz Company used perpetual inventory system to record inventory transactions for 2021. Inventory P 1,900,000 Sales 6,500,000 Sales returns 150,000 Cost of goods sold 4,600,000 Inventory losses 120,000 On December 24, the entity recorded a P 150,000 credit sales of goods costing P 100,000. These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory writedown is not yet recorded. What amount should be reported as Cost of Goods Sold for 2020? a. 5,020,000 b. 4,500,000 c. 4,720,000 d. 4,920,000
Show Solution: On September 1, Hydra purchased $13,300 of inventory items on credit with the terms 1/15, net 30,FOB destination. Freight charges were $280. Payment for the purchase was made on September 18.Assuming Hydra uses the perpetual inventory system and the net method of accounting for purchasediscounts, what amount is recorded as inventory from this purchase?a. $13,167 b. $13,447 c. $13,580 d. $13,300
Autumn Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month: The company purchased inventory on account for $43,000 on October 12. Terms of the purchase were 310/310 , n30/�30 . Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $640 were paid in cash. On October 31, Autumn paid for the inventory purchased on October 12. During October inventory costing $20,100 was sold on account for $30,800. It was determined that inventory on hand at the end of October cost $51,250.
The following information relates to Hampton Pty Ltd. On 5 April purchased inventory from R. Ward & Co. for $9000, terms 2/7, n/30. On 6 April paid freight costs to Freight Masters of $450 on inventories purchased from R. Ward & Co. On 7 April purchased equipment on account for $52 000. On 8 April returned incorrect inventories to R. Ward & Co. and was granted a $1500 allowance. On 11 April paid the amount due to R. Ward & Co. Required (a) Prepare the journal entries to record the transactions listed in the records of Hampton Pty Ltd. (b) Assume that Hampton Pty Ltd paid the balance due to R. Ward & Co. on 4 May instead of 11 April. Prepare the journal entry to record this payment.