The December 31, 2024, year-end inventory balance of the Almond Corporation is $224,000. You have been asked to review the following transactions to determine if they have been correctly recorded. 1. Goods shipped to Almond f.o.b. destination on December 26, 2024, were received on January 2, 2025. The invoice cost of $37,000 is included in the preliminary inventory balance. 2. At year-end, Almond held $21,000 of inventory on consignment from the Hardgrove Company. This inventory is included in the preliminary inventory balance. 3. On December 29, inventory costing $6,700 was shipped to a customer f.o.b. shipping point and arrived at the customer's location on January 3, 2025. The inventory is not included in the preliminary inventory balance. 4. At year-end, Almond had inventory costing $22,000 on consignment with the Juniper Corporation. The inventory is not included in the preliminary inventory balance. Required: Determine the correct inventory amount to be reported in Almond's 2024 balance sheet. Correct inventory balance

The December 31, 2024, year-end inventory balance of the Almond Corporation is $224,000. You have been asked to review the following transactions to determine if they have been correctly recorded. 1. Goods shipped to Almond f.o.b. destination on December 26, 2024, were received on January 2, 2025. The invoice cost of $37,000 is included in the preliminary inventory balance. 2. At year-end, Almond held $21,000 of inventory on consignment from the Hardgrove Company. This inventory is included in the preliminary inventory balance. 3. On December 29, inventory costing $6,700 was shipped to a customer f.o.b. shipping point and arrived at the customer's location on January 3, 2025. The inventory is not included in the preliminary inventory balance. 4. At year-end, Almond had inventory costing $22,000 on consignment with the Juniper Corporation. The inventory is not included in the preliminary inventory balance. Required: Determine the correct inventory amount to be reported in Almond's 2024 balance sheet. Correct inventory balance

Name: The December 31, 2024, year-end inventory balance of the AlmondCorpor
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Description: The December 31, 2024, year-end inventory balance of the AlmondCorporation is $224,000. You have been asked to review the followingtransactions to determine if they have been correctly recorded.1. Goods shipped to Almond f.o.b. destination on Decemb

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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A physical inventory count showed ABC Company had inventorycosting $428,000 on hand at December 31, 2025. This amountdid not include the following:1. Inventory costing $39,000 that was shipped to acustomer FOB shipping point on December 30, 2025.The inventory was expected to be received by thecustomer on January 3, 2026.2. Inventory costing $17,000 that was shipped to acustomer FOB destination point on December 29, 2025.The inventory was expected to be received by thecustomer on January 6, 2026.3. Inventory costing $26,000 that ABC Company hadpurchased from one of its suppliers. The goodswere shipped to ABC Company on December 31, 2025.ABC Company expects to receive the inventory onJanuary 4, 2026. The shipping terms were FOBshipping point.Calculate the correct dollar amount of ending inventoryto be reported on ABC Company’s December 31, 2025 balancesheet.
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Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory is valued at P76,050, based on a physical count. The following information has been found relating to certain inventory transactions. 1. P3 ,500 shipments of goods to a customer on December 31, terms FOB destination, was not included in the year-end inventory. The goods cost P2,600 and were delivered to the customer on January 8, 2021. The sale was properly recorded in 2021. Which of the following statements is true? a. There is no effect on the 2020 ending inventory. b. The 2020 ending inventory is overstated. c. The 2020 ending inventory is understated.
What is the correct amount of inventory on December 31, 2024?
Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory is valued at P76,050, based on a physical count. The following information has been found relating to certain inventory transactions.2. Goods costing P2,700 were received from a vendor on January 5, 2021. The related invoice was received and recorded on January 5, 2021. The goods were shipped on December 31, 2020, terms FOB shipping point. Which of the following statements is true?a. There is no effect on the ending inventory.b. There is no effect on the net income.c. The 2020 ending inventory is overstated.d. The 2020 net income is overstated. Include an explanation.
7. The following information belongs to Nizwa Trading company. Inventory balance on January 1, 2019: RO 600,000 Purchases made during the year 2019: RO 1,200,000 Inventory balance on December 31, 2019: RO 500,000, Transportation in OMR 250, Purchase Return OMR 750 Required: Compute cost of goods sold for the year 2019 assuming the company uses a periodic inventory system.
PROBLEM: Based on its general ledger/records, Alfonso Co. reported inventory of P356,400 at the end of 2021. The following items were included in the inventory total: P31,500 worth of goods shipped by "Free Along Side" on December 31, 2021, and received by Alfonso Co. on January 5, 2022. а. Goods worth P12,400 ordered from a supplier on December 26, 2021, were shipped on December 28 "Cost, Insurance, and Freight" but had not arrived by December 31. b. P14,800 worth of goods ordered on December 25, 2021, were shipped to Alfonso Co. FOB "Ex-ship" on December 28, 2021, and received on January 2, С. 2022. d. A client ordered P21,600 worth of goods on December 27, 2021, which were dispatched FOB Seller on December 29, 2021, and received by the customer on January 5, 2022. On December 29, 2021, goods worth P12,500 were shipped FOB Buyer to a client. The goods are still on their way, and the customer anticipates receiving them on January 6, 2022. е. What is the correct inventory amount to…
Brandeis Company's accounting records show the following for the year ending on December 31, 2022. Beginning Inventory Net Purchases Ending Inventory Using the periodic system, the cost of goods sold is $252,500 $235,000 $270,900 $208,500 $17,500 213,000 22,000 ? I hope you needed this image.
SPD Company ("SPD") asks you to review its inventory values at 31 December 2021, and prepare the necessary adjustments to the books. The following information is given to you. (1) SPD uses the periodic method of recording inventory. A physical count reveals $78,819 of inventory on hand at 31 December 2021. (2) Not included in the physical count of inventory is $11,690 of merchandise purchased on 13 December from MILL. This merchandise was shipped f.a.b shipping point on 22 December and arived in January. The invoice arrived and was recorded on 31 December. (3) Included in inventory is merchandise sold to DES on 17 December, f.o.b destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $13,298 on 31 December. The merchandise cost $10,210, and DES received it on 4 January. (4) Included in inventory was merchandise received from BCC on 31 December with an invoice price of S16,625. The merchandise was shipped f.o.b.…
A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Inventory costing $ 12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received on January 5, 2025. Inventory costing $14, 000, shipped f.o. b. destination from a vendor on December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was shipped to a customer f.o. b. destination on December 28, arrived at the customer's location on January 6, 2025. Inventory costing $54,000 was being held on consignment by another company. What amount should the company report as inventory in its December 31, 2024, balance sheet? Please explain your answer in detail of why you included or excluded?
You have been assigned to examine the financial statements of PC corp. for the year ended December 31, 2021, as prepared following IFRS. You discover the following situations: 1. Physical inventory count on Dec 31, 2021, improperly included merchandise costing $3,800 that had been sold but not delivered until Jan 5, 2022. PC uses a periodic inventory system. 2. Depreciation of $1,700 for 2021 on delivery vehicles was not recorded. 3. A collection of $4,600 on account from a customer received on Dec 31, 2021, was not recorded. 4. At the beginning of 2020, the company purchased equipment for $225,000 (residual value $22,500) and had a useful life of 6 years. The accountant used straight-line amortization but failed to deduct the residual value in the calculation of the depreciation for 2020 and 2021. Instructions: Prepare the required journal entries (if any) to correct PC accounts, assuming each transaction is independent and assuming 2021 books are not closed.