On October 1, 2019, Birdbox Company consigned 240 posters to Olympia Inc. The policy of the company in setting prices is 60% mark-up on cost. Freight on shipment was paid by Birdbox Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On October 17, Olympia Inc. submitted an account sales that it had sold 40% of the total consigned gods and that it sold 40% of the total consigned units and it remitted P116,720 after deducting 12%s and selling expenses of P10,000.
Q: Hinton Inc. is a software company that sells inventory management software and user support bundled…
A: Revenue each component=Bundled price*SSP/(SSP of both product)
Q: On August 5, 2021, Sheridan Furniture shipped 50 dining sets on consignment to Furniture Outlet,…
A: Solution: Cost per unit for Sheridan furniture = Cost of each dining set + Freight cost = $280 +…
Q: The accountant who posted the sale is now worried that they treated this incorrectly. They come to…
A: Revenue recognition refers to the timing and amount of the revenue that is to be recorded in the…
Q: into a contract with Benton Corp. to sell it $25,000 of goods. Aiken will deliver the goods on…
A: The journal entry is prepared to keep the record of day to day transactions of the business.
Q: The amount remitted by the retailer to the consignor is: the net income earned by the consignor on…
A: The calculation of amount remitted by the retailer to the Consignor and the net income earned by the…
Q: unland Company sells goods that cost $300,000 to Marigold Company for $400,000 on January 2, 2020.…
A:
Q: On January 1, 2030, KKK consigned 300 units of gaming keyboards to SSS Each keyboard costs P400 and…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
Q: During 2021, Claneverium Corporation transferred inventory from its home office to its Laguna branch…
A: Working:
Q: Sheridan Company sells goods that cost $320,000 to Ricard Company for $403,500 on January 2, 2020.…
A: a. Date Account title and explanation Debit ($) Credit ($) January 2,2020 Accounts receivable…
Q: On October 1, Claire Corp. shipped 25 cameras to Thor Inc. on consignment. The cameras are to be…
A: Consignment is the process of selling the goods to another part known as consignee against some…
Q: On May 3, 2020, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The…
A: Consignment is an arrangement in which goods are left in the possession of an authorized third party…
Q: In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000…
A: Goods on Consignment : Consignment is considered to be third party sales agreement in…
Q: Amianan Company consigned five calculators, with cost of P800 each, to the Bisdak Company which was…
A: Consignment Sales: Under Consignment, Goods are left with a third party(Consignee) to sell the…
Q: Indicate the income statement and balance sheet reporting by Pronghorn at October 31, 2020, of the…
A: Sales returns and allowances means value of goods that are being returned by customer or allowance…
Q: In 2021, Detroit transferred goods to a retailer on consignment. The goods cost P450,000 and…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
Q: Stark, Inc., placed an order for inventory costing 500,000 FC with a foreign vendor on April 15 when…
A: Journal entries are prepared to record the financial and non-financial transactions of the business…
Q: ABC Co., consigned 5 dozen of stainless chairs to DEF Co on April 1. 2021. Each chair cost P120 and…
A:
Q: (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account…
A: Journal entries refers to the official book of a company which is used to record the day to day…
Q: In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000…
A: As per IAS 15 Revenue recognition , When distinct goods or services are provided at standalone…
Q: EO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO…
A: The right answer is c.71,000
Q: On August 1, 2019, Aiken Corp. enters into a contract with Benton Corp. to sell it $25,000 of goods.…
A: Contracts are promises that the law will enforce. Contracts arise when a duty comes into existence,…
Q: During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900…
A: Solution: Amount of Purchases should be recorded on May 9, 2022 = Nos of sacks purchases * Price per…
Q: During 2015, AD Company signed a non-cancelable contract with BARD Company to purchase 5,000,…
A: Units purchased=5,000 Price=P1,700 Price fallen to=P1,680 Further decrease=P1,540
Q: On December 1, 2021, ABC Department Store received 505 sweaters on consignment from Todd. Todd's…
A: In a consignment, goods are transferred to another party (the consignee), who acts as an agent for…
Q: Jillian Inc. manufactures and installs customized equipment. On January 1, 2021, Jillian entered…
A: ANSWER IFRS 15 establishes the principles that an entity applies when reporting information…
Q: August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300…
A: As per IAS 15 Revenue recognition the contract modification will be treated as part of existing…
Q: On May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center.…
A: A journal entry is an accounting entry that is used to record a business transaction in the…
Q: On May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center.…
A: Account sales is a document generally used in the consignment business. It contains information…
Q: During 2020, BIOT Company signed a non-cancelable contract with BTS Company to purchase 5,000 units…
A: Formula: Loss on purchase = contract signed price - decrease in price.
Q: Ivanhoe Company sells on credits goods that cost $304,500 to Ricard Company for $418,500 on January…
A: Journal entry is a process of recording the business transactions in the books of accounts for the…
Q: y taken on December 31, 2021. After further processing costs of P240,000, Racine estimated that the…
A: Correct Answer : c. 560,000 As per the Lower of Cost or Net Realizable Value Rule the inventory…
Q: On July 2, 2022, Honesty Co. consigned 3,200 books costing P60 and retailing for P100 each to…
A: Let assume number of books sold by integrity co. Is X . Selling price of book = P100 Sale value…
Q: On July 2, 2022, Howard Co. consigned 3,200 books costing P60 and retailing for P100 each to Ines…
A: The actual books sold by Ines Co. will be total sales divided by sales price after deducting…
Q: In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000…
A: As per IAS 15 Revenue recognition When distinct goods or services are provided at standalone…
Q: On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost…
A:
Q: Roeher Company sold $9,000 of its specialty shelving to Elkins Office Supply Co. on account. Prepare…
A: No. Account Titles and Explanation Debit Credit a. Accounts receivable $9,000…
Q: Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The…
A: a. Date Account Titles and Explanation Debit Credit January 2, 2020 Accounts…
Q: On January 1, 20x1, ABC signed a 3-year, non-cancellable purchase contract which allows ABC to…
A: The entity must accrue a gain in the current year on goods subject to a firm purchase commitment if…
Q: During2019, A Company signed a non-cancelable contract with B Company to purchase5,000, 50-kilos…
A: Solution: In A's Dec 31,2020, profit and loss, amount to be reported as loss on purchase commitments…
Q: On March 20, Y3; Aylmer Inc entered into a consignment agreement with Belmont Services Corporation…
A: Consignment is the process where goods are sent by owner(consignor) to agent (consignee) for further…
Q: Racine Co. determined its desiccated coconut inventory on a FIFO basis at P520,000 with a…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: On July 1, 20x1, Lala Home Store shipped 150 ovens, costing P9,000 each on consignment basis to SM…
A: Consignment sales is a type of sales agreement in which one party, that is known as consignor sends…
Q: On July 19, 2021, SLRTN Inc. sold 19,000 units of its inventory to a customer for a total cash price…
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…
Q: Using the five-step process for revenue recognition, determine when and how much revenue would be…
A: Five Step Process: Step 1: Identify the contract with customers Step 2: Identify the separate…
Q: During 2020, ABC Company signed a non-cancelable contract with XYZ Company to purchase 5,000 units…
A: On entering into non cancellable contracts, the title of goods is transferred as and when the…
Q: ABC Co., consigned 5 dozen of stainless chairs to DEF Co. on April 1, 2021. Each chair cost P120 and…
A: Consignment is a form of agreement or contract between two parties, in which one party provides or…
Q: In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000…
A: The sale value original goods sold before modification eill not be changed. As it was given that the…
Q: In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000…
A: SOLUTION INITIAL CONTRACT AMOUNT =30000 MODIFICATION IN CONTRACT =21600 TOTAL CONTRACT AMOUNT AFTER…
Q: On October 1, 2020, Popsters Company consigned 240 posters to AshMatt Inc. Popsters policy in…
A: The question is related Consignment Accounting. The details are given.
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- Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.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.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
- On January 1, 2019, Piper Company entered into an agreement with Save-Mart to sell its most popular product, the gadget. The contract stipulates that the price per unit will decrease as Save-Mart purchases higher volumes of the gadget, as follows: The contract states that Save-Mart pays Piper the unit price based on the current sales volume. Once a volume threshold is reached, the price is retroactively reduced to the applicable price per unit. Based on its past experience with similar contracts, Piper believes that the total sales volume for the year will be 1,800 units and uses the most likely amount approach to estimate variable consideration. In addition, Piper concludes it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty surrounding the variable consideration is resolved. Required: 1. Determine the transaction price per unit that Piper should use to record revenue. 2. Assume that Save-Mart purchases 800 units in the first quarter of 2019 and 900 units in the second quarter of 2019. Prepare Pipers journal entries to record the sales in the first and second quarters. 3. Given the higher than expected sales volume in the first half of the year, Piper increases its estimate of the sales volume to 2,800 units. Prepare the journal entry to record this change in estimate.Rix Company sells home appliances and provides installation and service for its customers. On April 1, 2019, a customer purchased a dishwasher that Rix normally sells for 1,000. In addition, the customer purchased the installation service and a 3-year service contract, with stand-alone selling prices of 200 and 400, respectively. Because the customer purchased all three items as a bundle, Rix charged the customer 1,400. Required: 1. How should the transaction price be allocated among the products? 2. Prepare the journal entries to recognize revenue related to each product in 2019.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.
- 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.Dani Corporation signed a binding commitment on December 2 to purchase inventory for 300,000 cash on January 2. By December 31, the market price (replacement cost) of the inventory had declined to 280,000. Prepare Danis journal entries at year-end and at the date of purchase.On October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by JAA Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, JAA Inc. submitted an account sales and remitted P230,400 after deducting 12% commissions, selling expense of P10,000 and any reimbursable cost. Assume further that 50% of the remaining posters were returned to Win incurring freight of P5,000. Half of the returned goods were lost during the shipment. How much is the total loss and/or expenses accounted by Win in relation to the consignment other than the Cost of Goods Sold? Determine the cost of ending inventory
- On October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by JAA Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, JAA Inc. submitted an account sales and remitted P230,400 after deducting 12% commissions, selling expense of P10,000 and any reimbursable cost. How much is the net income?On October 1, 2020, Popsters Company consigned 240 posters to AshMatt Inc. Popsters policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by Popsters Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, AshMatt Inc. submitted an account sale stating that it had sold 40% of the total consigned units and AshMatt remitted P116,720 after deducting 12% commissions and selling expense of P10,000.1. The net income recognized by Popsters Company is2. Using the information above, and assuming that 20% of the consigned units were returned on 12/22 how much is the cost of ending inventory in the books of Popsters Company?Using the information above, and assuming that 20% of the consigned units were returned on December 22 (AshMatt incurred 5,000 shipping costs) and 50% of the goods returned were found obsolete when received by Popsters Company on December 24.3. How much is the cost of…On July 2, 2022, Howard Co. consigned 3,200 books costing P60 and retailing for P100 each to Ines Co. Freight cost paid by Howard Co. amounted to P3,200. On September 30, 2021, Howard Co. received from Ines Co. the amount of ₱127,620 in full settlement of the balance due. The consignee deducted a commission of ₱20 for each book sold, ₱180 for delivery expenses and ₱200 for advertising expense.How many books were actually sold by Ines Co.?