Pls hurry ty x 24°CHumidJC Corporation is in the process of adjusting and closing the books and preparing financialstatements at the end of the year, December 31, 2014. One item of concern is in the endinginventory of goods on hand. After the count had been completed, additional items notincluded in the storeroom count were listed for consideration. You are to consider each itemand decide whether it should be included in the ending inventory for 2014.CostMerchandise Inventory ValuationInitial inventory valuation based on a count of all goods on hand only, unless otherwisenotedP 200,000(a) Goods in a back room of the store were not included in the storeroom count at purchasecost.They are damaged and will be disposed of assalvage.P 1,400(b) Goods shipped on December 30, FOB destination, invoice mailed to our customer,delivery date January 5,2015.800(c) Goods currently being used for window displays (not damaged); were not included inthecount.1,800(d) Goods in receiving section that was shipped to JC on order. JC has refused to acceptthembecause of their damaged condition. They will be picked up on January 20 by thevendor2,000(e) Goods shipped to customer on December 30, FOB shippingpoint.1,000(f) An invoice has been received for goods ordered from a supplier, the goods had beenshipped, butnot yet received UC Corporation pays thefreight).600(g) Goods held by JC on consignment from PJ Company, not included in thecount.1,200Items in one corner of the storeroom were not included in the count because they hadbeen setaside for a sales order to be shipped on January15.Goods on counters and on shelves in salesareas.180,000() Items in the receiving section of the storeroom were excluded from the count becausethey hadbeen sold to customers and then returned (in resalablecondition).200Total - Correct inventory valuation at December 31, 2014400WENGUSEx...X6:09 am10/11/2022

Ending Inventory Valuation The manner a firm assesses its stock has a serious influence on its gross…

aside for a sales order to be shipped on January 15. Goods on counters and on shelves in sales areas. 400 180,000 Items in the receiving section of the storeroom were excluded from the count because they had been sold to customers and then returned (in resalable condition). 200 Total-Correct inventory valuation at December 31, 2014

aside for a sales order to be shipped on January 15. Goods on counters and on shelves in sales areas. 400 180,000 Items in the receiving section of the storeroom were excluded from the count because they had been sold to customers and then returned (in resalable condition). 200 Total-Correct inventory valuation at December 31, 2014

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

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Effects of an Inventory Error The income statements for Graul Corporation for the 3 years ending in 2019 appear below. During 2019, Graul discovered that the 2017 ending inventory had been misstated due to the following two transactions being recorded incorrectly. a. A purchase return of inventory costing $42,000 was recorded twice. b. A credit purchase of inventory' made on December 20 for $28,500 was not recorded. The goods were shipped F.O.B. shipping point and were shipped on December 22, 2017. Required: 1. Was ending inventory for 2017 overstated or understated? By how much? 2. Prepare correct income statements for all 3 years. 3. CONCEPTUAL CONNECTION Did the error in 2017 affect cumulative net income for the 3-year period? Explain your response. 4. CONCEPTUAL CONNECTION Why was the 2019 net income unaffected?
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
The following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to determine the firms cost of goods sold for 2012. Remember to change the year in row 24 and to enter new beginning inventory balances. Save the 2012 file as MFG3. Print the worksheet when done. If sales and other expenses were identical in 2011 and 2012, during which year did Twisp earn more income? Why?
Dollar-Value LIFO Kwestel Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Kwestels records: Required: Calculate the dollar-value LIFO inventory at the end of each year. Round to the nearest dollar.
Perpetual and Periodic Inventory Systems Following is a partial list of account balances for two different merchandising companies. The amounts in the accounts represent the balances at the end of the year before any adjustments are made or the books are closed. Required Identify which inventory system, perpetual or periodic, each of the two companies uses. Explain how you know which systemeach company uses by looking at the types of accounts on its books. How much inventory should Company A have on hand at the end of the year? What is its cost of goods sold for the year? Explain why you cannot determine Company Bs cost of goods sold for the year from the information available.
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olsons records: Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. 2. Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting.
JOURNALIZE ADJUSTING ENTRY FOR A MERCHANDISING BUSINESS: PERPETUAL INVENTORY SYSTEM On December 31, Anup Enterprises completed a physical count of its inventory. Although the merchandise inventory account shows a balance of 200,000, the physical count comes to 210,000. Prepare the appropriate adjusting entry under the perpetual inventory system
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
Inventoriable Costs During the first month of operations, ABC Company incurred the following costs in ordering and receiving merchandise for resale. No inventory was sold. Required What amount do you recommend the company record as merchandise inventory on its balance sheet? Explain your answer. For any items not to be included in inventory, indicate their appropriate treatment in the financial statements.