The owner of a local souvenir shop in Murrells Inlet is in the process of preparing an income statement at the end of the first year of operation. Because it is the first year of operation, there was no inventory at the beginning of the year. Given the following information: Merchandise Inventory end of year $20,000Purchases $100,000Freight - in - $4,000Sales $200,000Property Taxes - Store $8,000Depreciation - Store $25,000Insurance Store $7,000Salary - Sales Staff $20,000Advertising $5,000What is the gross margin? -

The owner of a local souvenir shop in Murrells Inlet is in the process of preparing an income statement at the end of the first year of operation. Because it is the first year of operation, there was no inventory at the beginning of the year. Given the following information: Merchandise Inventory end of year $20,000Purchases $100,000Freight - in - $4,000Sales $200,000Property Taxes - Store $8,000Depreciation - Store $25,000Insurance Store $7,000Salary - Sales Staff $20,000Advertising $5,000What is the gross margin? -

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...

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John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b)A physical count shows that merchandise inventory costing 51,800 is on hand as of December 31, 20--. (c, d, e)Neff estimates that customers will be granted 2,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,200. (f)Supplies remaining at the end of the year, 600. (g)Unexpired insurance on December 31, 2,600. (h)Depreciation expense on the building for 20--, 5,000. (i)Depreciation expense on the store equipment for 20--, 3,000. (j)Wages earned but not paid as of December 31, 1,800. (k)Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is 3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).
Coronado Inc. took a physical inventory at the end of the year and determined that $790000 of goods were on hand. In addition, Coronado, Inc. determined that $62500 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $87000 of goods out on consignment. What amount should Coronado report as inventory at the end of the year? O $790000. O $939500. O $867000. $877000.
Bell Inc. took a physical inventory at the end of the year and determined that $780k of goods were on hand. In addition, Bell Inc., determined that $60k of goods that were in transit that were shipped F.O.B. shipping point were actually received two days after the inventory count and that the company had $90k of goods out on consignment. What amount should Bell report as inventory at the end of the year? a.) 780k b.) 860k c.) 870k d.) 930k
Crane Inc. took a physical inventory at the end of the year and determined that $787k of goods were on hand. In addition, Crane Inc. determined that $60,500 of goods that were in transit that were shipped F.0.B. shipping point were actually received two days after the inventory count and that the company had $85,500 of goods out on consignment. What amount should Crane report as inventory at the end of the year? $872,500. $862,500. $787k. $933k.
Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand. In addition, the following items were not included in the physical count/ Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. destination point were actually received two days after the inventory count and that the company had $90,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year? (When writing your answer do not use commas or sign of the dollar. For example, if your answer is $1,500, write it as 1500) Answer:
Marigold Inc. tookaphysical inventory at the end of the year and determined that $777000 of goods were on hand. In addition, Marigold, Inc. determined that $ 57500 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $ 87000 of goods out on consignment. What amount should Marigold report as inventory at the end of the year? O $ 921500. O $777000. O $854000. O $864000.
Houghton Limited is trying to determine the value of its ending inventory as of February 28. 2022, the company's year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. For each of the transactions below, specify whether the item in question should be included in ending inventory, and if so, at what amount. On February 26, Houghton shipped goods costing $800 to a customer and charged the customer $1,000. The goods were shipped with terms FOB shipping point and the receiving reportindicates that the customer received the goods on (a) Not Included March 2 On February 26. Crain Inc shipped goods to Houghton under terms FOB shipping point. The invoice price was S600 plus $40 for freight. The receiving report indicates that the goods were received by Houghton on March 2. (b) ncluded Houghton had $750 of inventory isolated in the warehouse The inventory is designated for a customer who has requested that the…
Butter Company took a physical inventory at the end of the year and determined that $190,000 of goods were on hand. In addition, the entity determined that $24,000 of goods purchased were in transit shipped FOB destination. The goods were actually received three days after the inventory count. The entity sold $10,000 worth of inventory FOB destination. Such inventory is in transit at year-end. What amount should be reported as inventory at year-end? Select one: a. $214,000 b. $190,000 c. $200,000 d. $224,000
Prepare financial statements for Drake Company for the year. But first...... Calculate and record the Cost of Goods Sold expense: The ending inventory balance currently shows a $279,000 balance before adjustments. After counting and pricing it using FIFO, only $33,000 remains in inventory. Reduce inventory (credit entry) to its proper balance and adjust the COGS for the inventory that is gone. The income tax rate is 30%. LAccounts payable A Accounts receivable LA Building A Cash E Common stock I Cost of Goods Sold expense SORE Dividends LA Equipment Income tax expense Income tax payable Interest Expense Inventory LA Land Long Term Debt LOhio Sales tax payable ORE Retained earnings- beginning Sales Utilities expense Wages and salaries expense ? 246,000 $14,400 $196,200 ? $57,000 $225,680 $62,500 total debits and credits $3,000 33 $279,000 $53,431 $1,001,211 $250,000 ? $14,000 $96,000 $31,000 $78,000 $1,650 $52,561 $588,000 $1,001,211
At the beginning of the year, Snaplt had $10,000 of inventory. During the year, Snaplt purchased $35, 000 of merchandise and sold $30,000 of merchandise. A physical count of inventory at year-end shows $14,000 of inventory exists. Prepare the entry to record inventory shrinkage.
17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on onsignment. What amount should Bell report as inventory at the end of the year? a. $780,000. b. $840,000. c. $870,000. d. $930,000.
Z Wholesale Company began the year with merchandise inventory of $5,000. During the year, Z purchased $99,000 of goods, had purchase discounts of $150, and returned $6,500 due to damage. Z also paid freight charges of $1,200 on inventory purchases. At year-end, Z's ending merchandise inventory balance stood at $17,800. Assume that Z uses the periodic inventory system. Compute Z's cost of goods sold for the year. Less: Plus: Less: Cost of Goods Sold