subject:accounting Problem 9-7On April 15, 2018, fire damaged the office and warehouse of Stanislaw Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared.CashAccounts receivableInventory, December 31, 2017LandBuildingsAccumulated depreciationEquipmentAccounts payableOther accrued expensesCommon stockRetained earningsSales revenuePurchasesMiscellaneous expenseSTANISLAW CORPORATIONMARCH 31, 2018Net salesNet purchases$20,00040,00075,00035,000110,000Beginning inventoryEnding inventory3,60052,00026,600$362,200The following data and information have been gathered.1. The fiscal year of the corporation ends on December 31.2. An examination of the April bank statement and canceled checks revealed that checks written during the period April 1-15 totaled $13,000: $5,700 paid to accounts payable as of March 31,$3,400 for April merchandise shipments, and $3,900 paid for other expenses. Deposits during the same period amounted to $12,950, which consisted of receipts on account from customers withthe exception of a $950 refund from a vendor for merchandise returned in April.3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $15,600 for April merchandise shipments, including $2,300 for shipments in transit (f.o.b. shipping point) on that date.4. Customers acknowledged indebtedness of $46,000 at April 15, 2018. It was also estimated that customers owed another $8,000 that will never be acknowledged or recovered. Of theacknowledged indebtedness, $600 will probably be uncollectible.$41,3005. The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during thecurrent year. The corporation's audited financial statements disclosed this information:201723,70010,200100,00052,000135,000$362,200$530,000280,00050,00075,000Year EndedDecember 312016$390,000235,00066,00050,0006. Inventory with a cost of $7,000 was salvaged and sold for $3,500. The balance of the inventory was a total loss.Compute the amount of inventory fire loss. (Round ratios for computational purposes to 2 decimal places, e.g 78.52% and final answer to 0 decimal places, e.g. 28,987.)Inventory fire loss $

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Answered: Compute the amount of inventory fire…

Business

Accounting

Compute the amount of inventory fire loss. (R Inventory fire loss

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 6.5BPR: Multiple step income statement and balance sheet The following selected accounts anti their current...

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PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The following balances were gathered from the general ledger on March 31, 2021: Accounts receivable P 920,000 Inventory, 1/1/2021 1,880,000 Accounts payable 950,000 Sales 3,600,000 Purchases 1,680,000 Additional information follows: A. An examination of the April bank statement and canceled checks revealed checks written during the period April 1 to 30 as follows: Accounts payable, 3/31 P 240,000 April merchandise shipments 80,000 Expenses 160,000 Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refunds from a vendor for merchandise returned in April. B. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. C. Correspondence with suppliers revealed unrecorded obligations at April 30 of…
(Appendix 21.1) Visual Inspection The following changes in account balances were taken from Walson Companys adjusted trial balance at the end of 2019: In addition, the following information was obtained from the companys records: Land was sold, at cost, for 1,900. Dividends of 4,000 were declared and paid. Equipment was purchased for 10,400. Common stock was issued for 9,000. Beginning cash balance was 17,000. Required: Using visual inspection and the direct method, prepare Walsons 2019 statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
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ABC reports periodic loss of £100. This loss includes a loss on disposal of PPE of £50. Accounts receivables at the end (beginning) of the year is £50 (£80) and provision for legal expenses at the end (beginning) of the year is £35 (£10). Based on this information, cash from operating activities is Select one: a. None of the other answers is correct b. -5 c. 5 d. -195 e. -95
Problem 4 Part A. On 12/31/16, Phoebe Company’s balance sheet revealed a $7,000 balance in its allowance for doubtful accounts. During 2017, $2,000 of accounts were written off and $500 of accounts receivable previously written off were collected. On 12/31/17, bad debt expense was estimated to be 5% on net credit sales, which were $400,000 Required: Calculate the balance in the allowance for doubtful accounts on 12/31/17. Part B. The following information was taken from the unadjusted trial balance and aging schedule of Diane Company on December 31, 2017. All sales are on account. Accounts and related balances at December 31, 2017 before adjustment: Debit Credit Accounts receivable $46,000 Allowance for doubtful accounts $ 680 Sales (all on account) 500,000 Sales returns 3,000 Aging Schedule of Accounts Receivable: Age Amount % Uncollectible 0-30 days $14,000 5% 30-60…
Accounting for Assets: Receivables Johnson company’s financial year ended on December 31, 2010. All the transactions related to the company’s uncollectible accounts are can be found below: January 15 Wrote of $440 account of Miller Company as uncollectible April 2nd Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier July 31 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible August 15 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 September 26 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible October 16 Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible December 31 Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales…
Accounting for Assets: Receivables Johnson company’s financial year ended on December 31, 2010. All the transactions related to the company’s uncollectible accounts are can be found below: January 15 Wrote of $440 account of Miller Company as uncollectible April 2nd Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier July 31 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible August 15 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 September 26 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible October 16 Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible December 31 Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales…