why the closing inventory is 1440 The following trial balance has been extracted from the books of Tortoise Ltd as at 31December 2020Advertising costDirectors' remunerationSalesmen's salariesOffice rentWarehouse wagesAdministration expensesDistribution costShare capital £1Share premiumRevaluation surplusDividend paidCash at bank and in handReceivablesInterest paidDividend receivedInterest receivedHire of vehiclesAudit feeLand and buildings at cost (land 2280, buildings 600)Land and buildings accumulated depreciationPlant and machinery at costPlant and machinery accumulated depreciationRetained earnings account (at 1 January 2020)PurchasesSalesInventory at 1 January 2020Trade payablesBank loan£0003062103003243186004621921081,998150204662,8802,4007,56084018,918£0001,62054018012061801,0201,41012,99016269018,918 The following additional information is available:(a) Inventory at December 2020 was valued at a cost of £1,500,000. Included in thisbalance was goods that had cost £90,000. These goods had become damagedduring the year and it is considered that the goods could be sold for £30,000.(b) Depreciation for the year to 31 December 2020 is to be charged against cost ofsales as follows: Buildings 5% on cost (straight line), Plant and Machinery 30% oncarrying amount (Reducing balance).(c) Land is to be revalued upwards by £600,000.(d) Income tax of £990,000 is to be provided for the year to 31 December 2020.(e) The bank loan is repayable in five years' time.Required:Prepare the statement of profit or loss and other comprehensive income, statementof changes in equity and statement of financial position for publication for year ended31 December 2020. Show all workings.

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Business

Accounting

why the closing inventory is 1440

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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Sunland Corporation had the following items in inventory as at December 31, 2023: Item No. A1 84 C2 D3 (a) Quantity 4 120 110 190 120 Inventory 1 Unit Cost $3.20 Inventory 1.70 8.50 7.50 Your answer is partially correct. Assume that Sunland uses a periodic inventory system, and that none of the inventory items can be grouped together for accounti purposes. The opening inventory on January 1, 2023, was $3,200 in total. Account Titles and Explanation Allowance to Reduce Inventory to NRV NRV $3.80 1.10 Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) 10.30 7.10 (To transfer out beginning inventory balance) Allowance to Reduce Inventory to NRV (To record ending inventory at…
Complete the missing piece of information involving the changes in inventory, and their relationship to goods available for sale, for the two years shown: 2021 2022 Beginning inventory 10,000 7,000 Purchases 25,000 3,000 Goods available for sale 35,000 ? Ending inventory 7,000 ? Cost of goods sold ? 8,500
D9.
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How many units must be in ending inventory if beginning inventory was 16,924 units, 31,777 units were started, and 34,076 units were completed and transferred out?
A6
Wildhorse Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 $855,000 12/31/26 (a) Cost Date 1,022,000 LCNRV $809,400 986,700 Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming that the inventory is recorded at LCNRV, and that a perpetual inventory system. Using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit
Nn.194. Subject :- Account
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