Yui Sum Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leatherbriefcases at a uniform cost and sold 5,800 of them at £60 each. An inventories check on 31 December Year 9 established that they hold650 unsold briefcases. The gross profit for the year was £116,000.How much was the cost of each briefcase?O A. £17.85OB.£40.00O C. £35.69O D. £20.00

The objective of the question is to find out the cost of each briefcase. To do this, we first need…

Answered: Yui Sum Ltd commenced business on 1…

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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Shipments received from home office are billed at 120% of cost. During the year, the branch received shipments billed at P360,000, and returned damaged goods with billed price of P24,000. The branch has an ending inventory of P72,000. The branch reported a loss of P10,000. How much is the true branch income? a. P56,000 b. P54,000 c. P44,000 d. P34,000
Don Pedro has not kept accurate accounting records during the financial year. He had opening inventory of $6,700. Additional goods were purchased during the year. At the year end he had $5,400 left in inventory. Total sales was $102,360 All sales are made at a mark up on cost of 20%. What is Don Pedro’s gross profit for the year? a. $13,750 b. $17,060 c. $16,540 d. $20,675
The accounts payable balance at the beginning of the year was $98,000. The company purchased $445,000 worth of goods on account, and the ending balance of the payables account was $135,000. What were the total payments on account? Multiple Choice $548,000 $463,000 $408.000 $478.000
Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36
Perspective Company uses special journals to record its transactions. The following occurred during the month. Dec 1 Purchased 1,000 items of merchandise inventory costing 55 pesos each from A Corp. The company paid cash hence A Corp. gave the company a 3% discount. Perspective had to pay P1,000 for freight with terms, FOB Shipping Point. The company bought three pieces of laptops amounting to P50,000 each for cash. The laptops will be used by the new Accounting Officers. The laptops are estimated to have a useful life of 4 years with no salvage value. Purchased P130,000 of merchandise on credit with terms 2/10, n/30 Dec 3 from Z Ltd. The company sold 1,200 items to B Inc. for P 90,000 with terms 1/8, n/30. The cost of the merchandise is P67,000. The Company borrowed P500,000 cash by signing a note payable from Metrobank. The note has 45-day maturity and a 12% annual Dec 4 Dec 8 interest rate. B Inc. paid half of the amount due from them. The company paid in full the merchandise from Z…
James Dalton prepared draft accounts for his business for the year ended 31.12.20. According to the draft accounts, his profit for the year amounted to €23,000. The following mistakes have now been discovered. (1) An item purchased at the beginning of the year for €1,800 had been charged to revenue instead of being capitalised and depreciated at the rate of 10% per annum. (2) No record had been made of goods costing €200 which had been withdrawn by Mr Dalton for his own use. (3) Goods sold for €300 had been returned and included in the closing stock at their cost of €240. The value of the goods was nil. No entries had been made in the books to record their return by the customer. (4) A cheque for €100 was issued to a supplier but no entry had been made in the books to record the transaction. (5) On 31 December a second hand delivery van was purchased at a price of €2,800. This van was intended to replace an old one which had a written down value of €800 at that date. The new van was…
Yui Sum Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leather briefcases at a uniform cost and sold 5,800 of them at £60 each. An inventories check on 31 December Year 9 established that they hold 650 unsold briefcases. The gross profit for the year was £116,000. How much was the cost of each briefcase? O A. £17.85 OB. £40.00 O C. £35.69 O D. £20.00
The ABC merchandise Company has the following transactions: May 01: The Company purchased 5 units of inventory on account at a costof $500 each.May 04: sold 4 units of inventory on account at a price of $800 each.May 05: Purchased an additional 6 units on account at a cost of $500.May 07: Paid $2500 against purchases to supplier of inventory.May 08: Sold 5 units of inventory for cash at a sale price of $850.May 10: Collected $3200 from the customer against the credit sales onMay 04.Requirement: Prepare the journal entries to record the above transactions byusing the following:1. Perpetual inventory system2. Periodic inventory system check_circle Expert Answer Step 1 Under the perpetual inventory system, the cost of goods sold are recorded immediately at the time of the sale and it is kept updated in the books. Under this system, there is no physical count of inventory on regular basis. Under periodic inventory system, the physical count of inventory is taken from time to time.…
Pasadenas starts a business on the 1 June 20x8, introducing the following assets: cash £5,000 van £1,000 Pasadenas’s godfather agrees to lend the business £7,200 at an annual interest rate of 5% per annum. The business makes the following cash payments: goods for resale £6,000 rent for 6 months £1,500 In the first month of trade the business makes sales of £5,000 operating on a mark-up on cost of 25%. The inventory/stock held at the end of the first month’s trade was valued at £2,000. [Note: not all information provided above is required to answer this question correctly] Pasadenas’s capital account at the end of the first month’s trade is: Answers: a. £6,000 b. £13,000 c. £720 d. £6,720
H1. ravis Corporation begins the year with $50,000 of tire inventory. The company purchases tires worth $150,000 during the year. At the end of the year, the purchase cost of remaining inventory is $30,000. What is the cost of goods sold? Multiple Choice
Illustration: You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: 1. ProvidedP100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpetual inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales is P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000.

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