Home office shipped merchandise costing $120,000 to branch at a billed price of $168,000. Assume at the end of the accounting period, the branch reports its inventories (at billed price) at $28,000. Instructions: Prepare the working paper for a home office to analyze the flow of merchandise to the branch.
Q: Goods costing $2,500 are purchased on account on July 15 with credit terms of 2/10, n/30. On July…
A: As per the perpetual inventory system, a detailed and continuous record of inventory purchased or…
Q: ABC owns a branch in Baguio City. During the year, the home office shipped to the branch supplies…
A: A combined financial statement is that statement in which statements for more than two entities are…
Q: The following selected transactions were completed during April between Swan Company and Bird…
A: COST OF GOODS SOLD: Cost of Goods Sold refers to an income statement account that summates all the…
Q: The home office ships merchandise to the branch at 50 percent above cost. On its books the branch…
A: Formula: Overvaluation of branch inventory account = Cost of goods sold x Mark up percentage
Q: On June 3, Pearl Company sold to Chester Company merchandise having a sale price of $5,500 with…
A: Gross Method: Under the gross method, the sales transaction is recorded at a gross price i.e.,…
Q: Prepare Indigo’s journal entry when cash is received.
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Prepare journal entries to record each of the following sales transactions of a merchandising…
A: The procedure of entering business transactions for the first moment in the books of accounts is…
Q: On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse…
A: On April 2, 2021, Unbreakable Gifts Inc. shipped merchandise costing $40,000 to The Gift Warehouse…
Q: The home office bills shipments of merchandise to its branch at a markup of 20% based on cost. At…
A: Mark up on shipments from home office = $960, 000*20/80 = $240, 000
Q: Prepare journal entries on the Basim plc books to record sales and receivables all the events noted…
A:
Q: Goods costing $15,000 were sold for $20,000 on account. The entry to record this transaction would…
A: Cost of goods sold: It is the cost of goods that were sold during the period. The costs include all…
Q: McGovern Distributing is a merchandising company. Record each of the following transactions related…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with…
A:
Q: The home office of Farah Company ships merchandise to the Nour branch at a billed price that…
A: Net loss is the difference between total expenses and total revenue. In this expense are more than…
Q: McGovern Distributing is a merchandising company. Record each of the following transactions related…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The home office sent merchandise costing P300,000 to Branch 1 at a gross profit of 20%. Freight on…
A: Branch Accounting In simple term branch accounting are kept separate accounting which each branch in…
Q: The following selected transactions were completed during April between Swan Company and Bird…
A: Date Particulars Debit Credit 02-Apr Inventory (14,800+330) 15,130 Accounts payable-Swan…
Q: Official Brands’s general ledger and supplementary records at the end of its current period reveal…
A:
Q: On June 3, Culver plc sold to Arquette Company merchandise having a sales price of £ 3,200 with…
A: In the gross method of recording, the discount allowed should be recorded at the time of the amount…
Q: On June 3, Concord Company sold to Chester Company merchandise having a sale price of $3,300 with…
A: Accounts Receivable: Accounts receivables represent the amount of money owed by one business to…
Q: On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account,…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Goods costing $20,000 are purchased on account on April 1, 2021, with credit terms 2/10 n/30. On…
A: Given that, $20,000 are purchased on account on April 1, 2021 credit terms 2/10 n/30 On April 3, a…
Q: The home office ships merchandise to the branch at 50 percent above cost. On its books the branch…
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
Q: The chart of accounts of Sheridan Company includes the following selected accounts. 112…
A: 1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $6,000 with…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: During May, the last month of the fiscal year, the following transactions were completed: Record the…
A: We have the following information for the month of May:
Q: April 5, purchased merchandise on account from Kingbird Company for $31,400, terms 2/10, net/30, FOB…
A: a) Books of Novak Co. Journal entries Under Perpetual inventory system No. Date Account Title…
Q: On June 3, Marigold Company sold to Chester Company merchandise having a sale price of $4,600 with…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: repare journal entries on the Basim plc books to record sales and receivables all the events noted…
A:
Q: On June 3, Oriole Company sold to Chester Company merchandise having a sale price of $6,000 with…
A:
Q: ng May, the last month of the fiscal year, the following transactions were completed: Record the…
A: Date Account Title Debit Credit May 1 Rent Expenses $5000 Cash $5000 (To…
Q: ournalize the transactions above in a purchases journal, a sales journal, and a general journal.
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Goods costing $630,000 were sold for $1,200,000 on account. The entry to record this transaction…
A: The activity where the goods which are produced or manufactured by the entity are sold for cash or…
Q: On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise to Beasley Co. with terms…
A: Introduction Journal entry may be defined as a process of recording business transactions into the…
Q: On March 12, Sandhill Company received the balance due from Monty Company. (Credit account titles…
A: Journal entry is the primary entry that records the financial transactions initially.
Q: The home office sells merchandise to its branch at 120% of cost. The branch was established several…
A: Lets understand the basics. When home office shipped goods to branch office which exceeds its cost…
Q: On May 12, Digital Distributors received three shipments of merchandise. The first was shipped FOB…
A: Using the Perpetual inventory system, inventory account should be used to record the fright paid by…
Q: The following selected transactions were completed during April between Swan Company and Bird…
A: (1)
Q: ZKABAN bills its branch for merchandise shipments 25% of sale. As of cut-offf date, December 31,…
A: Step 1 Overvaluation allowance for branch account is adjusted off due to set off the inter branch…
Q: Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: A home office ships merchandise to the branch at 30% above cost. The allowance for overvaluation at…
A: The shipments to branch account during the year Particulars Amount Allowance for Overvaluation…
Q: On May 12, Wilcox Company accepted delivery of $20,000 of merchandise and received an invoice dated…
A: Following are the Journal entries recorded
Q: The following selected transactions were completed by Amsterdam Supply Co., which sells office…
A: What is meant by journal entries? It is the first step to record the financial transactions in the…
Q: his information relates to Metlock Co. On April 5, purchased merchandise from Ivanhoe Company for…
A: If payment made after the term period then there will be no discount available for Matlock co.
Q: On May 1, 2021, Company A shipped merchandise costing $16,000 to Company B on consignment. Company A…
A: Solution Goods sold on consignment Under goods sold on consignment the consignor sends the goods…
Q: On June 3, Marigold Company sold to Chester Company merchandise having a sale price of $4,600 with…
A: Accounts receivable is asset. When company sales on credit, then balance of account receivable would…
Q: The home office sent merchandise costing P300,000 to Branch 1 at a gross profit of 20%. Freight on…
A: Given, The home office sent merchandise costing P300,000 to Branch 1 at a gross profit of 20%.…
Home office shipped merchandise costing $120,000 to branch at a billed price of $168,000. Assume at the end of the accounting period, the branch reports its inventories (at billed price) at $28,000. Instructions: Prepare the working paper for a home office to analyze the flow of merchandise to the branch.
Step by step
Solved in 2 steps
- Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this year. Terms of sale are 2/10, n/30. The company is located in Los Angeles, California. June 1Sold merchandise on account to Hendrix Office Store, invoice no. 1001, 451.20. The cost of the merchandise was 397.06. 3Bought merchandise on account from Krueger, Inc., invoice no. 845A, 485.15; terms 1/10, n/30; dated June 1; FOB San Diego, freight prepaid and added to the invoice, 15 (total 500.15). 10Sold merchandise on account to Ballard Stores, invoice no. 1002, 2,483.65. The cost of the merchandise was 2,235.29. 13Bought merchandise on account from Kennedy, Inc., invoice no. 4833, 2,450.13; terms 2/10, n/30; dated June 11; FOB San Francisco, freight prepaid and added to the invoice, 123 (total 2,573.13). 18Sold merchandise on account to Lawson Office Store, invoice no. 1003, 754.99. The cost of the merchandise was 671.94. 20Issued credit memo no. 33 to Lawson Office Store for merchandise returned, 103.25. The cost of the merchandise was 91.89. 25Bought merchandise on account from Villarreal, Inc., invoice no. 4R32, 1,552.30; terms net 30; dated June 18; FOB Santa Rosa, freight prepaid and added to the invoice, 84 (total 1,636.30). 30Received credit memo no. 44 for merchandise returned to Villarreal, Inc., for 224.50. Required Record the transaction in the general journal using the perpetual inventory system. If using Working Papers, use pages 25 and 26.
- Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?Post the following November transactions to T-accounts for Accounts Payable and Inventory, indicating the ending balance (assume no beginning balances in these accounts). A. purchased merchandise inventory on account, $22,000 B. paid vendors for part of inventory purchased earlier in month, $14,000 C. purchased merchandise inventory for cash, $6,500
- Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5. B. July 10: Furniture Warehouse returned 5 couches for a full refund. C. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. D. July 20: Furniture Warehouse paid their account in full with cash.Review the following transactions, and prepare any necessary journal entries for Renovation Goods. A. On May 12, Renovation Goods purchases 750 square feet of flooring (Flooring Inventory) at $3.00 per square foot from a supplier, on credit. Terms of the purchase are 2/10, n/30 from the invoice date of May 12. B. On May 15, Renovation Goods purchases 200 measuring tapes (Tape Inventory) at $5.75 per tape from a supplier, on credit. Terms of the purchase are 4/15, n/60 from the invoice date of May 15. C. On May 22, Renovation Goods pays cash for the amount due to the flooring supplier from the May 12 transaction. D. On June 3, Renovation Goods pays cash for the amount due to the tape supplier from the May 15 transaction.
- 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.John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b)A physical count shows that merchandise inventory costing 51,800 is on hand as of December 31, 20--. (c, d, e)Neff estimates that customers will be granted 2,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,200. (f)Supplies remaining at the end of the year, 600. (g)Unexpired insurance on December 31, 2,600. (h)Depreciation expense on the building for 20--, 5,000. (i)Depreciation expense on the store equipment for 20--, 3,000. (j)Wages earned but not paid as of December 31, 1,800. (k)Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is 3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).Record journal entries for the following transactions of Barrera Suppliers. A. May 12: Sold 32 deluxe hammers at $195 each to a customer, credit terms 10/10, n/45, invoice date May 12; the deluxe hammers cost Barrera Suppliers $88 each. B. May 15: Customer returned 6 hammers for a full refund. The merchandise was in sellable condition at the original cost. C. May 20: Customer found 2 defective hammers but kept the merchandise for an allowance of $200. D. May 22: Customer paid their account in full with cash.
