,Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff'sInventory and purchases are as follows:BookinterencesInventory, January 1, 20x71Purchases during 2007Inventory, December 31, 20x7€224,000849,000188,000The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourthquarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows:Fourth quarter of 20x61-1.29015January 1, 20x71-1.320301Average during 20x71-1.39655Fourth quarter of 20071-1.45000December 31, 20x71-1.47280

Certainly, I can assist you with calculating the cost of Stuff Company's inventory and purchases…

Answered: , Stuff Company is a subsidiary of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff’s inventory and purchases are as follows: Inventory, January 1, 20X7 € 230,000 Purchases during 20X7 858,000 Inventory, December 31, 20X7 183,000 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20X6 € 1 = $ 1.29015 January 1, 20X7 € 1 = $ 1.32030 Average during 20X7 € 1 = $ 1.39655 Fourth quarter of 20X7 € 1 = $ 1.45000 December 31, 20X7 € 1 = $ 1.47280 Required: Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. Note: Round your intermediate calculations and final answer to nearest dollar amount. Show the translation of cost of goods sold for 20X7, assuming that the euro is the…
Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff's inventory and purchases are as follows: Inventory, January 1, 20X7 Purchases during 20x7 Inventory, December 31, 20x7 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20x6 January 1, 20X7 Average during 20x7 Fourth quarter of 20x7 December 31, 20x7 € 226,000 866,000 194,000 €1-$1.29015 €1$ 1.32030 € 1$ 1.39655 €1-$1.45000 € 1$ 1.47280 Required: a. Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. Note: Round your intermediate calculations and final answer to nearest dollar amount. a. Cost of goods sold b. Cost of goods sold b. Show the translation of cost of goods sold for 20X7, assuming that the euro is…
Austin Powers plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18300, and the ending inventory was £15100. Purchases of £22600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year £1 = $1.11 £1 = $1.11 £1 = $1.14 £1 = $1.18 Average rate for the year Date the ending inventory was acquired Assume that the U.S.dollar is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
A U.S. pulp brokerage firm which prepares its financial statements according to U.S. GAAP and uses a periodic inventory system had the following transactions during the year: Tons Activity Beginning inventory Purchase Sale Purchase November Sale The cost of sales (in '000s) in FIFO, LIFO and Weighted average: Date Activity (000s) 1 5 February May August 2 3 4 $ per Ton 600 650 700 680 750
Basil plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18800, and the ending inventory was £13100. Purchases of £27600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year £1 = $1.11 £1 = $1.10 £1 = $1.14 £1 = $1.19 Average rate for the year Date the ending inventory was acquired Assume that the Great Britain Pound is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Vour Answer:
The ABC sole proprietorship deals with the trade of IT items and the provision of related services. Carry out the adjustment entries of the accounts for the fiscal year 20X6 as well as those for the determination of the gross profit taking into account the following information: For the accounting of inventories, the company applies a periodic inventory and evaluates the inventories using the weighted average cost method. The company trades the kind P. The initial inventory consists of 20 units with a purchase price of € 50 per unit. In the fiscal year, 20X6 bought 80 units for € 55 per unit and 80 units for € 60 per unit. In the inventory of 31/12/20X6, the stocks in the warehouse consist of 30 units whose liquidation price amounts to € 55 per unit. Total gross merchandise sales amounted to €45,000 and sales returns to €400. During the 20x6 fiscal year, the company had purchased $1,000 at a $200 exchange rate= € 1. On 31/12/20X6, the current USD exchange rate is $1 =€ 1.2. The…
Assume that Merryland’s Markets had an inventory balance of $32 570 at the close of the last accounting period. The following sales and purchase transactions are for the current period. NOTE: GST at 10% is included in the amount where applicable. 1. 2. 3. 4. Purchased goods on account for $29,909. Returned part of the above purchase that had an original invoice price of $1,749. Paid for the balance of the purchase in time to receive a discount of 2% of the invoice price. Sold goods on account costing $24 900 for an invoice price of $54 802. Required (a) Prepare general journal entries assuming the perpetual inventory system is used. (b) Suppose that a physical count of the inventory at the end of the current period shows inventory of $30,420 to be on hand. Present the entries (if any) required to adjust for any discrepancy.
1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was settled on the same day. Global Entity makes use of the perpetual inventory system. Show the effect of each transaction on the Accounting Equation. Use the equation: A= OE + L a. Asset; +40 000 = Equity; nil + Liability; nil. Asset; -40 000 b. Asset; +40 000 = Equity; nil + Liability; nil. Asset; +40 000 c. Asset; -40 000 = Equity; -40 000 + Liability; nil d. Asset; +40 000 = Equity; nil + Liability; +40 000 e. Asset; nil = Equity; -40 000 + Liability; +40 000 2. Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s…
On June 1 of the current year, Zeta Corp. recorded purchases of inventory of P 800,000 and P 1,000,000 under credit terms 2/15, net 30. The payment due on the P 800,000 purchase was remitted on June 16. The payment due on the P 1,000,000 purchase was remitted on June 31. Under the net method and the gross method, these purchases should be included at what respective amounts in the determination of cost of goods available for sale? Net Method P 1,784,000 1,764,000 Gross Method P 1,764,000 А. В. 1,800,000 С. 1,764,000 1,800,000 1,784,000 1,764,000 D.
On September 1, ABC Company purchased P950,000 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were P2,000. Payment for the purchase was made on September 18. Assuming ABC Company uses the perpetual inventory system and the net method of accounting for purchase discounts. What amount recorded on September 1 as accounts payable from this purchase?
Fall Company began operations in the current year. The entity used perpetual inventory system. 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination. 2. Fall Company paid freight charge of P50,000. 3. During the year, Fall Company paid for 80% of the merchandise within the discount period. 4. The remaining 20% was paid beyond the discount period. 5. Fall Company sold 70% of the merchandise it acquired for cash of P1,200,000. The other 30% remained in inventory at year-end. Required: Prepare journal entries to record the transacions using gross method and net method.
Fall Company began operations in the current year. The entity used perpetual inventory system.1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination.2. Fall Company paid freight charge of P50,000.3. During the year, Fall Company paid for 80% of the merchandise within the discount period.4. The remaining 20% was paid beyond the discount period.5. Fall Company sold 70% of the merchandise it acquired for cash of P1,200,000. The other 30% remained in inventory at year-end. Required:Prepare journal entries to record the transactions using gross method and net method.

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