
Principles of Financial Accounting, Chapters 1-17 - With Access (Looseleaf)
22nd Edition
ISBN: 9781259582394
Author: Wild
Publisher: MCG
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Chapter 6, Problem 9AP
1.
To determine
Estimate Company A’s year-end inventory at cost using retail inventory method.
2.
To determine
Prepare a calculation showing the Company A’s loss from shrinkage at cost and at retail.
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash withdrawals by owner
Consulting revenue
Salaries expense
Cash
$ 8,450
Accounts receivable
16,950
Office supplies
4,080
Rent expense
Land
46,020
Office equipment
18,860
Telephone expense
Accounts payable
9,280
Owner investments
84,920
Miscellaneous expenses
$ 2,930
16,950
4,420
7,900
860
680
Exercise 1-18 (Algo) Preparing an income statement LO P2
Using the above information prepare a December income statement for the business.
ERNST CONSULTING
Income Statement
Revenues
Rent expense
Salaries expense
Telephone expense
Total revenues
$
4,420
7,900
860
$
SA
Assets
Cash
8,450
Accounts receivable
16,950
Office supplies
4,080
Land
46,020
Office equipment
18,860
navable
9,280
13,180
5
11
of 14
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Assets
Current Assets
Cash
Credit card receivables
Accounts receivable
Marketable securities
Food Inventories
Prepaid expenses
Total Current Assets
Golden Bay Balance Sheet as at December 31
Year 2018
Year 2019
$ 18,500
9,807
$ 29,400
11,208
5,983
6,882
15,400
2,000
12,880
14,700
10 800
14 900
73370
79 090
Property Plant & Equipment
Land
Building
Equipment
Furnishings
$ 60,500
828,400
114,900
75,730
(330,100)
16 600
766 030
839 400
$ 60,500
884,400
157,900
81,110
(422,000)
18 300
7 80 210
859 300
Net: Accumulated depreciation
China, glass, silver, & linen
Total Assets
Liabilities & Stockholders' Equity
Current Liabilities
Accounts payable
Accrued expenses payable
Taxes payable
Current mortgage payable
Total Current assets
$ 19,200
4,200
12,400
26 900
62 700
$16,500
5,000
20,900
26 000
68 400
Long-term liabilities
Mortgage payable
Total Liabilities $
$512 800
$486 400
575 500
$555 200
Stockholders' Equity
Common stock ($5 par. 40,000 shares issued & OS) $200,000
Retained earnings…
Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.
Chapter 6 Solutions
Principles of Financial Accounting, Chapters 1-17 - With Access (Looseleaf)
Ch. 6 - Perpetual: Assume that Marvel uses a perpetual...Ch. 6 - Perpetual: Assume that Marvel uses a perpetual...Ch. 6 - Perpetual and Periodic: Assume that Marvel uses a...Ch. 6 - Periodic: Assume that Marvel uses a periodic FIFO...Ch. 6 - Prob. 5MCQCh. 6 - A company has cost of goods sold of 85,000 and...Ch. 6 - Describe how costs flow from inventory to cost of...Ch. 6 - Where is the amount of merchandise inventory...Ch. 6 - Prob. 3DQCh. 6 - If costs are declining, will the LIFO or FIFO...
Ch. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - If inventory errors are said to correct...Ch. 6 - Prob. 9DQCh. 6 - What is the meaning of market as it is used in...Ch. 6 - Prob. 11DQCh. 6 - What factors contribute to (or cause) inventory...Ch. 6 - When preparing interim financial statements, what...Ch. 6 - Prob. 14DQCh. 6 - Prob. 15DQCh. 6 - Prob. 16DQCh. 6 - Prob. 17DQCh. 6 - Inventory ownership Homestead Crafts, a...Ch. 6 - Prob. 2QSCh. 6 - Computing goods available for sale Wattan Company...Ch. 6 - A company reports the following beginning...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Assigning costs with FIFO Trey Monson...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - QS 5-18 Contrasting inventory costing...Ch. 6 - Prob. 19QSCh. 6 - Prob. 20QSCh. 6 - Analyzing inventory Endor Company begins the year...Ch. 6 - Prob. 22QSCh. 6 - Prob. 23QSCh. 6 - Prob. 1ECh. 6 - Inventory costs Walberg Associates, antique...Ch. 6 - Perpetual: Inventory costing methods P1 Laker...Ch. 6 - Question: Laker Company reported the following...Ch. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Perpetual: Inventors- costing methodsFIFO and...Ch. 6 - Question: Refer to the information in Exercise...Ch. 6 - Question: Refer to the information in Exercise 6-7...Ch. 6 - Lower of cost or market Martinez Companys ending...Ch. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Periodic: Cost flow assumptions Lopez Company...Ch. 6 - Periodic: Cost flow assumptions Floras Gifts...Ch. 6 - Prob. 16ECh. 6 - Estimating ending inventorgross profit method On...Ch. 6 - Prob. 18ECh. 6 - Alternative cost flows Warnerwoods Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Warnerwoods...Ch. 6 - Alternative cost flows Montoure Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Montoure...Ch. 6 - Prob. 5APCh. 6 - Prob. 6APCh. 6 - Prob. 7APCh. 6 - Prob. 8APCh. 6 - Prob. 9APCh. 6 - Prob. 10APCh. 6 - Alternative cost flows Ming Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Ming Company...Ch. 6 - Perpetual: Alternative cost flows Aloha Company...Ch. 6 - Prob. 4BPCh. 6 - Prob. 5BPCh. 6 - Prob. 6BPCh. 6 - Prob. 7BPCh. 6 - Prob. 8BPCh. 6 - Retail inventory method The records of Macklin Co....Ch. 6 - Prob. 10BPCh. 6 - Prob. 6SPCh. 6 - Prob. 1BTNCh. 6 - Prob. 2BTNCh. 6 - ETHICS CHALLENGE Golf Challenge Corp. is a retail...Ch. 6 - COMMUNICATING IN PRACTICE You are a financial...Ch. 6 - Prob. 5BTNCh. 6 - Prob. 7BTNCh. 6 - Prob. 9BTN
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