A fre wiped out Paine Paper Company's tInventory The insurance company will accept an estimate using the retail method Last year's balance sheet stated that the ending inventorywas $12,000 and it would usually sell for $38,000 Mr Pichai knows that the cost of purchases was $130 000 and the retail seling prices for the paper totalled $278,000 Credt cardreceipts indicate that there was $253 000 of sales since the beginning of the yoar Cakulate the cost of the lost ending inwentory for the insurance company (Round the retail ratioto two decimai places and the final answer to the nearest dollar.)The lost ending inventory is

calculation of cost of ending inventory using retail method Particulars Cost Retail Beginning…

A fre wiped out Paine Paper Company's Inventory The insurance company will accept an estenate using the retal method Last year's balance sheet stated that the ending inventory was $12.000 and it would usualy sel for $38,000 Mr Pichai knows that the cost of purchases was $130 000 and the retail seling prces for the paper totalled $278,000 Credt card receipts indicate that there was 5253,000 of sales since the beginning of the year Calculate the cost of the lost ending inventory for the insurance company (Round the retail ratio to two decimal places and the final answer to the nearest dollar.)

A fre wiped out Paine Paper Company's Inventory The insurance company will accept an estenate using the retal method Last year's balance sheet stated that the ending inventory was $12.000 and it would usualy sel for $38,000 Mr Pichai knows that the cost of purchases was $130 000 and the retail seling prces for the paper totalled $278,000 Credt card receipts indicate that there was 5253,000 of sales since the beginning of the year Calculate the cost of the lost ending inventory for the insurance company (Round the retail ratio to two decimal places and the final answer to the nearest dollar.)

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

See similar textbooks

Similar questions

Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Bryce Company manufactures pet supplies. However, Bryces electronic accounting system recently crashed and, unfortunately, only a partial recovery of the companys year-end accounting records (which included several profitability ratios) was possible. As a result, Bryces controller, a bright young CMA named Jeanette, must compute various lost financial account balances using the recovered information listed below. Long-term liabilities: 1,500,000 Ending inventory is the same as beginning inventory. Gross margin: 3,000,000 Net sales: 8,000,000 Accounts receivable turnover: 50 Ending accounts receivable is the same as beginning accounts receivable. Total liabilities: 2,000,000 Current ratio: 2.5 Cash: 600,000 Quick ratio: 2.0 Inventory turnover in days: 3.65 Required: 1. Calculate current liabilities. 2. Calculate current assets. 3. Calculate average accounts receivable 4. Calculate marketable securities. 5. Calculate average inventory.
Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer pays their account in full on July 24. On July 28, the customer discovers 17 gallons are the wrong color and returns the paint for a full cash refund. Blue Barns returns the gallons to their inventory at the original cost per gallon. Record the journal entries to recognize these transactions for Blue Barns.
Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its ending inventory was 2,100, and costs had increased 5% during the year. Required: What is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company discovers each error 2 years after it is made and it has closed the books for the second year. Ignore income taxes. E22-13: The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-vear life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest.
Shetland Company reported net income on the year-end financial statements of $125,000. However, errors in inventory were discovered after the reports were issued. If inventory was understated by $15,000, how much net income did the company actually earn?
Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $7 cash per unit (for a total cost of $7,000). Allied sold 500 of the units in inventory for $11 per unit (invoice total: $5,500) to Macy Co. under credit terms 2/10, n/60. Record the cost of goods sold. Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $550). Allied restores the units, which cost $350, to its inventory. Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $150 to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
Light Trading lost most of its inventory in a fire in December, 2023 just before the year-end physical inventory was taken. The company's books disclosed the following: Purchases P3,900,000 Sales 6,500,000 Purchase returns 300,000 Sales returns 240,000 Merchandise with selling price of P210,000 remain undamaged after the fire. Damaged merchandise with an original selling price of P150,000 had a net realizable value of P53,000. A partial comparative profit and loss for 2022 and 2021 also disclosed the following: 2022 2021 Sales P5,000,000 P5,600,000 Cost of goods sold: Inventory, Januar 1 P 945,000 P1,100,000 Purchase (net) 3,780,000…
Assume that the following was extracted from Massy’s accounting information system foroperations at this outlet for the week, up to the time of the fire.$ $Sales 830,000 Purchases Returns 56,000Purchases 580,000 Beginning Inventory 160,000Sales Returns 42,000The company’s gross profit percent based on net selling price is 40%. Merchandise with aselling price of $60,000 remainded undamaged after the fire. Some smoke damagedmerchandise has a residual value of $18,200.The company is in the process of estimating its fire loss on inventory using the gross profitmethod, for insurance purposes.
BBM Company lost most of its inventory in a fire in December, 2021, just before the year-end physical inventory was taken. The company’s books disclosed the following:Invy, 1/1/21 - 1,700,000Purchases - 3,900,000 Purchase return - 300,000Sales - 6,500,000 Sales returns - 240,000Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with an original selling price of P150,000 had a net realizable value of P53,000. A partial comparative profit and loss for 2020 and 2019 also disclosed the following:2020: Sales - 5,000,000; CGS - 3,025,0002019: Sales - 5,600,000; CGS - 3,332,000Assuming that BBM Company had no insurance coverage, what is the amount of loss as a result of the fire?