Tech Innovators Inc., a technology company, sells high- quality gadgets. At the beginning of 2023, they had inventory valued at $100,000. During the year, they made additional purchases totaling $250,000. By the end of the year, their ending inventory was valued at $80,000. They sold all other inventory during the year. Calculate the Cost of Goods Available for Sale. Calculate the Cost of Goods Sold (COGS). If Tech Innovators Inc. made total sales of $500,000, calculate the Gross Profit. Green Fields Ltd., a company specializing in organic produce, acquired machinery on January 1, 2022, for $120,000. The machinery is expected to have a useful life of 8 years and a residual value of $8,000. Green Fields Ltd. uses the straight-line depreciation method for all its equipment. Calculate the annual depreciation expense for the machinery. Prepare a journal entry to record the depreciation expense for the year 2022. If Green Fields Ltd. decides to sell the machinery on January 1, 2025, for $90,000, calculate the gain or loss on the sale.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...
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Tech Innovators Inc., a technology company, sells high-
quality gadgets. At the beginning of 2023, they had
inventory valued at $100,000. During the year, they made
additional purchases totaling $250,000. By the end of the
year, their ending inventory was valued at $80,000. They
sold all other inventory during the year. Calculate the
Cost of Goods Available for Sale. Calculate the Cost of
Goods Sold (COGS). If Tech Innovators Inc. made total
sales of $500,000, calculate the Gross Profit. Green
Fields Ltd., a company specializing in organic produce,
acquired machinery on January 1, 2022, for $120,000. The
machinery is expected to have a useful life of 8 years and
a residual value of $8,000. Green Fields Ltd. uses the
straight-line depreciation method for all its equipment.
Calculate the annual depreciation expense for the
machinery. Prepare a journal entry to record the
depreciation expense for the year 2022. If Green Fields
Ltd. decides to sell the machinery on January 1, 2025, for
$90,000, calculate the gain or loss on the sale.
Transcribed Image Text:Tech Innovators Inc., a technology company, sells high- quality gadgets. At the beginning of 2023, they had inventory valued at $100,000. During the year, they made additional purchases totaling $250,000. By the end of the year, their ending inventory was valued at $80,000. They sold all other inventory during the year. Calculate the Cost of Goods Available for Sale. Calculate the Cost of Goods Sold (COGS). If Tech Innovators Inc. made total sales of $500,000, calculate the Gross Profit. Green Fields Ltd., a company specializing in organic produce, acquired machinery on January 1, 2022, for $120,000. The machinery is expected to have a useful life of 8 years and a residual value of $8,000. Green Fields Ltd. uses the straight-line depreciation method for all its equipment. Calculate the annual depreciation expense for the machinery. Prepare a journal entry to record the depreciation expense for the year 2022. If Green Fields Ltd. decides to sell the machinery on January 1, 2025, for $90,000, calculate the gain or loss on the sale.
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