Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical, however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows: Car ID 203 207 210 During 2021, each of the three autos sold for $90,000 Additional purchases (listed in chronological order) and sales for the year were as follows: Car 10 211 Cost $60,000 60,000 63,000 212 213 214 215 216 217 218 219 Cost $63,000 63,000 64,500 66,000 69,000 70,500 72,000 72,300 75,000 Selling Price $ 90,000 93,000 not sold. 96,000 100,500 not sold 105,000 106,500 not sold
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- Allen Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from Allens accounting records are as follows: Accounts payable at December 31, 2019: Additional information is as follows: 1. Parts held on consignment from Charlie to Allen, the consignee, amounting to 155,000 were included in the physical count of goods in Allens warehouse on December 31, 2019, and in accounts payable at December 31, 2019. 2. 22,000 of parts, which were purchased from Full and paid for in December 2019, were sold in the last week of 2019 and appropriately recorded as sales of 28,000. The parts were included in the physical count of goods in Allens warehouse on December 31, 2019, because the parts were on the loading dock waiting to be picked up by customers. 3. Parts in transit to customers on December 31, 2019, shipped FOB shipping point on December 28, 2019, amounted to 34,000. The customers received the parts on January 7, 2020. Sales of 40,000 to the customers for the parts were recorded by Allen on January 3, 2020. 4. Retailers were holding 210,000 at cost (250,000 at retail) of goods on consignment from Allen, the consignor, at their stores on December 31, 2019. 5. Goods were in transit from Greg to Allen on December 31, 2019. The cost of the goods was 25,000, and they were shipped FOB shipping point on December 29, 2019. 6. A quarterly freight bill in the amount of 2,000 specifically relating to merchandise purchases in December 2019, all of which was still in the inventory at December 31, 2019, was received on January 4, 2020. The freight bill was not included in either the inventory or in accounts payable at December 31, 2019. 7. All of the purchases from Baker occurred during the last 7 days of the year. These items have been recorded in accounts payable and accounted for in the physical inventory at cost before discount. Allens policy is to pay invoices in time to take advantage of all cash discounts, adjust inventory accordingly, and record accounts payable, net of cash discounts. Required: Prepare a schedule of adjustments to the initial amounts of inventory, accounts payable, and sales. Show the effect, if any, of each of the transactions separately and indicate if the transactions would have no effect on the amount.On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a shoe retailer, for 70 each. FootAction has the right to return the shoes for any reason up to March 31, 2019, for a full refund. The cost of each pair of shoes is 32. ShoeKing predicts that it is probable that 40 pairs of the shoes will be returned. ShoeKing uses the perpetual method for inventory. Required: 1. Prepare ShoeKings journal entry on January 5, 2019, to account for this transaction. 2. Assume that FootAction returns 35 pairs of shoes on March 31, 2019. Prepare the journal entry to record this return.Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows: Car ID Cost 203 $ 93,000 207 93,000 210 96,000 During 2021, each of the three autos sold for $123,000. Additional purchases (listed in chronological order) and sales for the year were as follows: Car ID Cost Selling Price 211 $ 93,000 $ 123,000 212 93,000 126,000 213 94,500 not sold 214 96,000 129,000 215 99,000 133,500 216 97,500 not sold 217 102,000 138,000 218 99,300 139,500 219 105,000 not sold How do you calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system?
- All Things Auto are retailers who purchase and sell vehicle parts and accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with a merchandise inventory of 10 batteries of the "DieHard" brands at a total cost of $168,200.The following transactions, relating to the “DieHard" brand were completed during the quarter: October 5- Purchased 15 batteries at a cost of $17,020 per pair. October 14- Sold 18 batteries at $22,250 per battery October 22 -Purchased 24 batteries at a cost of $18,175 each but the the supplier gave a 4% quantity discount. November 10- Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown's Detailing at a price of $23,990 each. November 12- Owing to an increased demand for this brand, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All things auto paid $288 incash on each battery to have the inventory shipped from the vendor’s warehouse to their location. November 27-…All Things Auto are retailers who purchase and sell vehicle parts and accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with a merchandise inventory of 10 batteries of the "DieHard" brands at a total cost of $168,200.The following transactions, relating to the “DieHard" brand were completed during the quarter: October 5- Purchased 15 batteries at a cost of $17,020 per pair. October 14- Sold 18 batteries at $22,250 per battery October 22 -Purchased 24 batteries at a cost of $18,175 each but the the supplier gave a 4% quantity discount. November 10- Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown's Detailing at a price of $23,990 each. November 12- Owing to an increased demand for this brand, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All things auto paid $288 incash on each battery to have the inventory shipped from the vendor’s warehouse to their location. November 27-…O'Brien Company is a manufacturer of purses. They sell products to Maureen, Inc., a women's clothing store. Both companies use perpetual inventory systems. On June 2, 2020, O'Brien Company sold 400 purses on account to Maureen, Inc. O'Brien's cost was $40,000 ($100 each) and the selling price was $60,000 ($150 each) with terms of 1/15, n/30. Maureen paid O'Brien on June 8, 2020 for the June 2 transaction that had terms of 1/15, n/30. Question 5 of 8 What follows is a fill in the blank question with 21 blanks. Prepare the June 8 journal entry(ies) for O'Brien Company. Date Account Names DR CR 6/8 Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text.…
- All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter:October 5: Purchased 15 batteries at a cost of $17,020 each.October 14: Sold 18 batteries at $22,250 per batteryOctober 22: Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount.November 10: Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each.November 12: Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on eachbattery to have the inventory shipped from the vendor’s warehouse to their location.November…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…
- All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s warehouse to their location. November…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…