Chapter 5 Practice Question after virtual tutorial (1)

Part B The company completed the following transactions during 2020.• Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements:1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of creditsales are…

#37 On June 7, 2020, TOTTENHAM Company acquired P3,000,000 inventory, terms 3/10, 2/20, 1/30, n/60. The Company made the following account payments:   Assuming that partial payments are eligible for cash discounts, if paid within the relevant discount period, how much total cash was paid during these four payment dates?

Current Attempt in Progress Sheridan Industries had the following inventory transactions occur during 2025, its first year of operations: Units Cost/unit Feb. 1, 2025 Purchase 93 $39 Mar. 14, 2025 Purchase 160 $40 May 1, 2025 Purchase 114 $42 The company sold 263 units at $54 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1548, what is the company's net income using LIFO? O $1544.90 O $1334.20 O $1906.00 O $2207.00

This quiz: 5 point(s) possible This question: 1 point(s) possible Babino, Inc. had net sales of $51,800,000 for the year ended May 31, 2024. Its beginning and ending total assets were $53,200,000 and $95,800,000, respectively. Determine Babino's asset turnover ratio for year ended May 31, 2024. (Round the asset turnover ratio to two decimal places, X.XX.) Asset turnover ratio C

What is the company’s gross profit rate beginning January 1, 2020? A. 24% B. 21% C. 17% D. 20%

Problem 10: Use the following information for the next three questions: On January 1, 2021, DELAY Co. sold transportation equipment with a historical cost of P8,000.000 and accumulated depreciation of P2,800,000. In consideration for the sale, DELAY Co. received cash of P400,000 and a noninterest-bearing note receivable of P4,000,000 due in 4 equal annual installments. The first installment was made on January 1, 2021. The prevailing rate of interest for this type of note is 12%. 29. How much is the carying amount of the note on initial recognition? 30. How much is the interest income for 2021? 31. How much is the carrying amount of the note on January 1, 2022? Problem 11: Use the following information for the next three questions: On January 1, 2021, FORCEFUL Co. sold machinery with historical cost of P8,000,000 and accumulated depreciation of P4,400,000 in exchange for a 3-year, P4,800,000 noninterest-bearing note receivable due in equal semi-annual payments starting July 1, 2021.…

Problem 9: Use the following information for the next five questions: On January 1, 2021, PITIFUL Co. sold transportation equipment with a historical cost of P8,000.000 and accumulated depreciation of P2,800,000. In consideration for the sale, PITIFUL Co. received cash of P400,000 and a noninterest-bearing note receivable of P4,000,000 due in 4 equal annual installments starting December 31, 2021. The prevailing rate of interest of this type of note is 12%. 24. How much is the carrying amount of the note on initial recognition? 25. How much is the interest income for 2021? 26. How much is the carrying amount of the note on December 31, 2021? 27. How much is the current portion of the note on December 31, 2021? 28. How much is the noncurrent portion of the note on December 31, 2021? I

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Current Attempt in Progress Blossom Corporation began operations on December 1, 2024. The only inventory transaction in 2024 was the purchase of inventory on December 10, 2024, at a cost of $25 per unit. None of this inventory was sold in 2024. Relevant information is as follows. Ending inventory units December 31, 2024 December 31, 2025, by purchase date December 2, 2025 127 July 20, 2025 127 50 177 During the year, the following purchases and sales were made. Purchases Sales March 15 327 units at $30 April 10 227 July 20 327 units at 32 August 20 327 September 4 227 units at 36 November 18 177 December 2 127 units at 38 December 12 227 The company uses the periodic inventory method. (a1) Your answer is correct. Calculate the weighted-average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted-average cost $ (a2) eTextbook and Media Your answer is partially correct. 32.11 Attempts: 1 of 4 used Determine ending inventory under (1) specific identification, (2) FIFO,…

Subject : Accounting

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Problem 13: The records of BAGBAGOT AKO Company for the year ended December 31, 2020, showed the entries affecting the company's foxed assets accounts. Equipment: On January 1, 2020, a second hand equipment was acquired by issuing a P100,000 non-interest bearing note payable on December 31, 2021. The company's borrowing rate is 10%. This equipment has an estimated useful life of 10 years and a salvage value of P25,000. Land: On January 1, 2020, a municipality donated a land to the company as an inducement to establish business and create jobs for the unemployed residents. The land was appraised at P48,500. Since no costs were incurred, the company did not record the transaction. Building: On July 1, 2020, the company's contractor completed the construction of a building on the land received as donation. The company paid cash of P50,000 in connection with the construction and issued 100,000 shares of its P5 par value ordinary shares to the construction company. At this date, the shares…

Question The management of Flames Technologies Ltd (FTL) provided the following information relating to its operations for the year ended December 31, 2020: Sales $1,610,000 $50,000 Sales returns It began the 2020 year with inventory at cost, $248,000 and valued at retail, $441,600 During the year the company made purchases at cost, $964,000 and valued at retail $1,363,800; freight charges were $30,500. Purchase returns at cost were $30,200 and valued at retail at $49,600 The management of FTL also provided information pertaining to markups and markdowns as shown below: The company had additional markups of $93,200 Markup cancellations during the year amounted to $10,800 Markdowns during the year amounted to $39,200 Markdown cancellations during the year amounted to $10,500 Normal shortages due to theft amounted to $58,200 On 31 December 2020, a major fire destroyed all the company's inventory in its warehouse, and in order to make an insurance claim, the management team of FTL has…

PROBLEM 18: San Jose Corporation was organized on January 1, 2020. On December 31, 2021, the corporation lost most of its inventory in a warehouse fire just before the year end count of inventory was to take place. Data records disclosed the following: 2020       2021     Beginning inventory      P 0     P 1,020,000  Purchases                4,300,000   3,460,000  Purchase returns and allowances                                                   230,600     323,000  Sales                         3,940,00    4,180,000  Sales returns and allowances                                                        80,000     100,000  On January 1, 2021, the corporation’s pricing policy was changed so that the gross profit rate would be 3% points higher than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at P120,000 while damaged merchandise marked to sell at P80,000 had an estimated realizable value of P18,000. 23. How much is the inventory loss due to fire?

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EXERCISES On June 1, 2003, the Luttman and Dowd Company sold inventory to the Ushman Corporation for $400,000. Terms of the sale called for a down payment of $100,000 and four annual installments of $75,000 due on each June 1, beginning June 1, 2004. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. $150,000. The company uses the perpetual inventory system. Exercise 5-1 Installment sales; alternative recognition methods The inventory cost Foster Required: 1. Compute the amount of gross profit to be recognized from the installment sale in 2003, 2004, 2005, 2006, and 2007 using point of delivery revenue recognition. Ignore interest charges. 2. Repeat requirement 1 applying the installment sales method. 3. Repeat requirement 1 applying the cost recovery method. Exercise 5-2 Construction The Ugenti Construction Company contracted to construct a warehouse building for $2,600,000. 2004. Data relating to the contract are summarized below:…

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hi i need help with this questions with the last 3 questions   Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $732,300 cash. Immediately after the acquisition, the two companies have the following account balances. Clay’s equipment (with a five-year remaining life) is actually worth $604,900. Credit balances are indicated by parentheses.     Adams   Clay   Current assets $ 326,000   $ 290,000   Investment in Clay   732,300     0   Equipment   781,900     526,000   Liabilities   (280,000 )   (170,000 ) Common stock   (350,000 )   (150,000 ) Retained earnings, 1/1/20   (1,210,200 )   (496,000 )     In 2020, Clay earns a net income of $62,700 and declares and pays a $5,000 cash dividend. In 2020, Adams reports net income from its own operations (exclusive of any income from Clay) of $193,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows:      Adams Clay Revenues $ (452,000…

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Current Attempt in Progress The following information was taken from the accounting records of Bramble Ltd. and Crane Ltd. at October 31, 2024. The two companies are competitors. Bramble Ltd. Crane Ltd. Ending inventory, Oct. 31, 2023 $386,000 $144,000 Ending inventory, Oct. 31, 2024 302,000 464,000 Cost of goods sold, 2024 5,504,000 4,256,000 Sales for 2024 6,880,000 8,512,000 (a) Calculate the gross margin, gross margin ratio, and inventory turnover ratio at October 31, 2024, for: i. Bramble Ltd. ii. Crane Ltd. (Round gross margin ratio and inventory turnover ratio to 1 decimal place, e.g. 15.2% or 10.1.) Bramble Ltd. Crane Ltd.

Question 14 Listen> Wilbur Company sells equipment on March 31, 2017, for $43,000 cash. The equipment was purchased on January 5, 2014, at a cost of $86,400, and had an estimated useful life of five years and a residual value of $5,200. Wilbur Company uses straight-line depreciation for equipment. Adjusting journal entries are made annually at the company's year end, Calculate the gain or loss on the sale of the equipment. Round answer to nearest whole dollar. Enter without decimal places or dollar signs. If negative enter a "-" at the beginning of the number. Your Answer: Answer

#36 On March 1, 2020, SWANSEA Company acquired P1,500,000 of merchandise, terms 2/10, 1/15, n/45. The shipping costs amounted to P25,000, terms FOB shipping point, freight prepaid. On March 5, the Company returned merchandise worth P200,000. What is the total amount paid by the Company assuming it paid all its obligations to its supplier on March 12, 2020?

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Exhibit7.5 Sullivan Produce Co. switched from FIFO to LIFO on January1,2018, for external reporting and income tax purposes, while retaining FIFO for internal reports. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following: December31,2018              Year-End Costs $438,000    Cost Index 1.05 December 31,2019             Year-End Costs $460,000    Cost Index 1.15 December 31, 2020            Year-End Costs $520,000    Cost Index 1.25 Refer to Exhibit 7-5, The ending inventory at December 31,2020, using the dollar-value LIFO method would be a. $422,000 b. $402,000 c $426,000 d. $420,400   Refer to Exhibit7-5, the ending inventory at December 31,2019, at base-year price is: a.$400,000 b. $402,000 c.$406,000 d.$424,000

PROBLEM 2. On September 30, 2021, a fire at Uranus Company's only warehouse caused severe damage to its entire inventory. Based on recent history, Uranus has a gross profit of 25% on sales. The following information is available from Uranus's records for the nine months ended September 30, 2021. Inventory, January 1, 2020-P 300,000; Net Purchases- P 4,200,000; Net sales- P 3,540,000. A physical inventory disclosed usable damaged goods which Uranus estimates can be sold to a jobber for P 50,000 2. Using the gross profit method, what is the estimated cost of merchandise lost by the fire?

Walang Kayo Company Question: Under accrual basis, what amount should be reported as gross sales for the current year? a. P6,650,000 b. P6,600,000 c. P6,350,000 d. P6,550,000

Exercise 5-9 During the next fiscal year ending June 30.2020, Texas Company will mmake substantial investments in new product lines and in a modernization program. Significant changes to be made during the year are listed below: 1. Equipment with a net book value of P86,000 will be sold during the year. 2. All of the capital stock of Ohio Company will be exchanged with 5,000 shares of Texas Company at a time when the market value is P40 per share. P250,000 cash will also be given as part payment. 3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at 98%. 4. Trading securities carried at market value of P200,000 will be sold for P215,000. 5. New equipment will be purchased during the year. 6. A new building will be purchased at a cost of P1,000,000, although there are no building retirements. 7. Cash dividends will! be paid to stockholders. The financial statements forccast for the year ended June 30, 2020 are given next page: