Mema Inc. branch in Cebu began operations on January 2, 2022. During the first year of operations, the home office shipped merchandise to the Malate branch at cost of P250,000. One-fourth of the merchandise remained unsold at the end of 2022. Freight-in of P2,000 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows

Mema Inc. branch in Cebu began operations on January 2, 2022. During the first year of operations, the home office shipped merchandise to the Malate branch at cost of P250,000. One-fourth of the merchandise remained unsold at the end of 2022. Freight-in of P2,000 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
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.
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).
Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019. M7-6 The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200 M7-7 The cost of the inventory on January 31, 2019, under the LIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200
A Company’s branch in San Fernando began operations on January 1, 2021. During the first year of operations, the home office shipped merchandise to the San Fernando branch that cost P250,000. Freight-in of P1,500 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows:* A. A year-end adjusting entry debiting the branch account for ₱1,500. B. A year-end adjusting entry debiting the home office account for ₱1,500. C. A year-end adjusting entry crediting the branch account for ₱1,500. D. No year-end adjusting entry for the freight charge.
A Company’s branch in San Fernando began operations on January 1, 2021. During the first year of operations, the home office shipped merchandise to the San Fernando branch that cost P250,000. Freight-in of P1,500 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows: * A. A year-end adjusting entry debiting the branch account for ₱1,500. B. A year-end adjusting entry debiting the home office account for ₱1,500. C. A year-end adjusting entry crediting the branch account for ₱1,500. D. No year-end adjusting entry for the freight charge. 6. A branch is allowed to make sales, carry inventory for resale to customers, and incur normal operating expenses. The home office ships merchandise to the branch at cost plus a 20% markup. The home office uses a loading account. If the loading account is used in its customary fashion, it will track a. Unrealized inventory profits only b. Unrealized inventory profits and…
On December 2023, the home office of Rada Company recorded a shipment of merchandise to its Calamba branch as follows:Calamba branch 30,000 Shipment to Calamba Branch 25,000 Unrealized profit in branch inventory 4,000 Cash (freight charges) 1,000The Calamba branch sells 40% of the merchandise to outside entities during the rest of December 2023. The books of the home office and Calamba branch are closed on December 31 of each year. At what amount should the 60% of the merchandise remaining unsold at December 31, 2023 should be included in the published statement of financial position of Rada Company at December 31, 2023?
Yahoo Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were shipped to Palawan branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000. Purchases from outsiders is P326,250. How much is the cost of goods available for sale of the branch?
CDE Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were shipped to Palawan branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000. Purchases from outsiders is P326,250. How much is the cost of goods available for sale of the branch?
Objective Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were shipped to Palawan branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000. Purchases from outsiders is P326,250. How much is the cost of goods available for sale of the branch?Required to answer. Single line text.
YE Company ships inventory to its branch at a mark-up of 125% of cost. The required balance of the allowance for overvaluation account is P1,425,000. During the year, the home office sent merchandise to the branch costing P9,000,000. At the start of the year, the branch's Statement of Financial Position shows P1,800,000 of inventory on hand that was acquired from the home office. How much is the amount to be debited to the allowance for overvaluation in branch inventory at the end of the year? A.1,225,000B.2,610,000C.1,425,000D.1,185,000