Switzer, Inc. has 5 computers that have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400. How much loss should Switzer, Inc. record for the year?Sub. Account.

Switzer, Inc. has 5 computers that have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400. How much loss should Switzer, Inc. record for the year?Sub. Account.

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7RE: At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in...

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Sheffield, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $550 and originally retailed for $940. At the statement date, each computer has a current replacement cost of $350. How much loss should Sheffield, Inc., record for the year? $4400. $1600. $2800. $2200.
Crane, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $580 and originally retailed for $930. At the statement date, each computer has a current replacement cost of $430. What value should Crane, Inc., have for the computers at the end of the year? $7440. $2320. $4640. $3440.
Sheridan, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $620 and originally retailed for $920. At the statement date, each computer has a net realizable value of $420. What value should Sheridan, Inc., have for the computers at the end of the year? $3360. $7360. $4960. $2480.
BBM Company lost most of its inventory in a fire in December, 2021, just before the year-end physical inventory was taken. The company’s books disclosed the following:Invy, 1/1/21 - 1,700,000Purchases - 3,900,000 Purchase return - 300,000Sales - 6,500,000 Sales returns - 240,000Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with an original selling price of P150,000 had a net realizable value of P53,000. A partial comparative profit and loss for 2020 and 2019 also disclosed the following:2020: Sales - 5,000,000; CGS - 3,025,0002019: Sales - 5,600,000; CGS - 3,332,000Assuming that BBM Company had no insurance coverage, what is the amount of loss as a result of the fire?
Wormold Industries suffered a fire in its warehouse on March 4, 2021. The warehouse was fullof finished goods, and after reviewing the damage, management determined that inventory,with a retail selling price of $90,000, was not damaged by the fire.For the period from January 1, 2021, to March 4, 2021, accounting records showed thefollowing: Purchases $650,000Purchase returns 16,000Sales revenue 955,000 The inventory balance on January 1, 2021, was $275,000, and the company has historicallyearned a gross profit percentage of 35%.Required: Use the gross profit method to determine the cost of inventory damaged by the fire.
At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in RE11-6 in Year 1, prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops.
ABC Corporation lost most of its inventory in a fire on April 10, 2020. Its books disclose following data: Inventory, January 1, 2020 Purchases in 2020 Purchases returns Sales Sales returns Purchases discounts Rate of gross profit on sales S180,000 400,000 30,000 650,000 25,000 10,000 30% Through the diligence of the local Fire Department, ABC was able to salvage and merchandise costing $4,000. Required: Calculate the amount of the loss from the fire, to be presented as a claim to th company. Show your computations.
What did i do wrong in my calculations? On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $18,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1 $ 130,000 Net purchases from November 1, to the date of the fire 146,000 Net sales from November 1, to the date of the fire 226,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 30% of net sales. Required:Calculate the estimated loss on the inventory from the fire, using the gross profit method. $134,200
Solve and provide explanation.
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year.
How do I do the journal entries, adjusting entries, and closing entries ( assuming FIFO for inventory) Transactions and information for the year: Jan 1st. Spent $3,500 to improve the first piece of equipment purchased in Year 1. Revised useful life is 5 more years while the new salvage value is $2,000. Jan 2nd, ordered and received 200 units of inventory purchased on account for $13 each Jan 15th, paid $100 to settle a warranty claim from a customer. Feb 3rd, ordered and received 150 units of inventory purchased on account for $12 each Feb 22nd, sold 250 units of inventory at $65 each. $10,000 was on account. The inventory came with a 1 year warranty. The company expects that providing the warranty will cost 1% of the sales made. March 1st, incurred and paid $900 of wages expense Mar 30th, collected $5000 of accounts receivable April 1st, paid $50 to settle a warranty claim from a customer. May 2nd, Paid $4000 of accounts payable. June 1st, Paid $409 of taxes payable June 30th, made…
As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $1,070 cash. The shelves originally cost $7,480 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $580. M9-10 (Algo) Part 1 Required: 1. Complete the accounting equation below, indicating the account, amount, and the effect of disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.) Cash Equipment Assets 1,070 (7,250) 420= Accumulated Depreciation-Equipment Liabilities Stockholders' Equ