A fire in July, just before the year-end physical inventory, destroyed the majority of GH Corporation's inventory. The retrieved company’s record is indicated below. Beginning Inventory USD 1, 550,000 Purchases for the year USD 4, 070,000 Purchase returns USD 290,000 Sales USD 5, 865, 000 Sales Returns USD 213, 000 Gross margin rate on cost 24%   Compute for the estimated gross profit of GH Corp and the amount of inventory loss due to fire.

Q: the following information appears in B corporation's records for the year ended December 31:…

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Cost of inventory destroyed can be found out by applying the gross profit ratio on sale and finding…

Q: On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory.…

A: Estimated cost of inventory destroyed by fire = Beginning inventory + Purchases - Cost of goods sold…

Q: Wallace Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net Purchases = Purchases for the year - Purchase returns = $390,000 - $30,000 = $330,000 Net sales…

Q: 1,700,000 Purchases - 3,900,000 Purchase return - 300,000 Sales - 6,500,000 Sales returns - 240,000

A: Valuation of closing inventory: Valuation of closing inventory based on gross profit value and rate…

Q: Eastman Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net sales = Sales revenue - Sales returns = $415000 - $21000 = $394000 Gross profit = Net sales x…

Q: The following information is available for October for Norton Company. Beginning inventory $400,000…

A: Loss by fire is the loss of those inventories from warehouse which are damaged by fire in the…

Q: The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the…

A: Net Purchase cost = Purchases for the year - Purchase returns + Freight = $34,000 - $1,500 - $1,300…

Q: The following information is available for October for Barton Company: Beginning inventory $350,000…

A: Compute the cost of goods sold (COGS): Gross profit on sales 40%  66.67% / (100% + 66.67%)…

Q: Metlock Company lost most of its inventory in a fire in December just before the year-end physical…

A: Formula: Amount of loss = Ending inventory - Undamaged inventory - Net realizable value of damaged…

Q: corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600…

A: solution : net purchase     =358400 – 30000                              =328400 Net sales…

Q: Eastman Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net Purchases = Purchases for the year - Purchase returns = $290,000 - $28,000 = $262,000 Net sales…

Q: Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: Gross Profit is profit earned on selling the goods, which is calculated by deducting Cost of goods…

Q: 9. On October 31, 2020, ABC Company reported that a flood caused severe damage to the entire…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold. In…

Q: Assume that the following was extracted from Massy’s accounting information system for  operations…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold.…

Q: A. Macarty Company's records indicate the following information for the year: Merchandise inventory,…

A: Cost of goods sold = sales - sales x gross profit ratio = $3100000 - 3100000*30% = $2170000

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of…

A: Ending inventory is determined after deducting COGS from goods available for sale and the gross…

Q: The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the…

A: For calculating the ending inventory , we need to prepare the trading account.

Q: Using the gross profit method, the estimated ending inventory destroyed by fire is a. £34,000. b.…

A: Given information is: Sales = £600000 Percentage markup on cost  = 66.67% Then Cost of goods sold =…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: The gross profit approach is a method of determining the volume of finishing inventory in a given…

Q: Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and…

A: The cost of goods sold represents the total cost of the goods that are required in the production…

Q: The following information is available for July for Aluminum Company. Beginning inventory Net…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold =…

Q: Company A reported that a flood recently destroyed many of their financial records. The entity used…

A: Ending inventory may be defined as the balance of inventory in the hands of company at the end of…

Q: Wallace Company lost most of its inventory in a fire in December just before the year-end physical…

A: Loss: It is an excess of expenses over firm revenue from single or multiple transactions that arise…

Q: Qtso Company reported during the current year the following: P 500,000 2,500,000 3,200,000 A…

A: The Cost of Goods sold is the Cost of producing the inventory by the firm. The Ending inventory is…

Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

A: Sales revenue is calculated as sum of cost of inventory and mark up value. Net sales is calculated…

Q: On 1 September 20x6, a business had inventory of $380,000. During the month, sales totalled $650,000…

A: We have the following information: Opening Inventory: $380,000 Sales: $650,000 Purchases: $480,000…

Q: Assume that the following was extracted from Massy’s accounting information system for operations at…

A: Estimated loss on fire can be calculated by the following formula   Estimated loss = Ending…

Q: Fosbre Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $150,000, and…

A: Step 1: Calculate the cost of goods sold.

Q: The inventory of Marshall's Merchandise Company was destroyed by fire on June 1. From an ex-…

A: Income statement: This statement shows the income earned and loss incurred by the organization in…

Q: Wildhorse Company reported the following information for November and December 2022.     November…

A: Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory…

Q: Assume that the following was extracted from Massy’s accounting information system for operations at…

A: Introduction Gross profit method: gross profit method is the method of estimating amount in ending…

Q: On June 19, 20X0, a fire destroyed a fraction of the uninsured merchandise inventory of the ABC…

A:

Q: On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in…

A: Loss by Fire - Loss by fire or any other natural calamities is an extraordinary loss for the…

Q: On October 31, 2010, a flood at Pamela Company’s only warehouse caused severe damage to its entire…

A: Cost of goods sold:- It refers to the direct cost of producing the goods sold by a company. This…

Q: 17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods…

A: If the terms are FOB shipping point, the goods in transit are the property of the buyer. Hence, the…

Q: On 1st Nov 2020, a business had inventory of $380,000. During the month,  sales totalled $650,000…

A: Data given: Opening inventory = $380,000 Purchase during the month= $480,000 Sales during the month…

Q: The Southern Company installed a new inventory management system at the beginning of Year 1. Shown…

A: Inventory Turnover=Cost of goods soldAverage value of Inventory Average Inventory= (Beginning…

Q: On June 30, a fire destroyed Intense Company's entire inventory. The inventory on January 1 totaled…

A: Cost of goods sold = P7800000 × 70%       =   P5460000

Q: A fire in July, just before the year-end physical inventory, destroyed the majority of GH…

A: Cost of goods sold means cost incurred for the purpose of sales of goods. Gross profit is the sales…

Q: On December 31, 2010, what is the estimated cost of missing inventory?

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: On June 30, 2021, a fire at Norjanna Company’s only warehouse caused severe damage to its inventory.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On 1 September 20X6, a business had inventory of $380,000. During the month, sales totalled…

A: We have the following information On 1 September 20X6, a business had inventory of $380,000 During…

Q: On August 31, a flood at Lordgin Company's only warehouse caused severe damage to its entire…

A: Solution: Gross profit for 8 months = Net sales * 25% = P5,200,000 * 25% = P1,300,000

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.