Polo company sold 10,000 units of merchandise to Exxon company for a price of $10 each in cash applicable sales tax rate was 8% which was not included in price unit cost was $6.50 provide the journal entry to record the sale on polos books
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- 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.Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
- Monster Drinks sells twenty-four cases of beverages on October 18 for $120 per case. On October 25, Monster sells another thirty-five cases for $140 per case. Sales tax is computed at 4% of the total sale. Prepare journal entries for each sale, including sales tax, and the remittance of all sales tax to the tax board on November 5.Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.Lapu-lapu Company sold merchandise on a consignment basis to dealers. The gross profit was 25% above cost. The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during the current year Manufacturing cost of goods shipped on consignment 8,800,000 Sales price of merchandise sold by dealers 9,600,000 Payments remitted by dealers after deducting commission 6,300,000 19. What was the gross profit on consignment sales? 1,920,000 c. 1,700,000 1,220,000 d. 2,400,000
- Shaw Company purchased 2000 units of a merchandise (called XOM) at $10 per unit from Reynold Company on account. Sales taxes was 6% which was not included in the price. Shaw Company was charged $150 for shipping and handling. Terms were 2/10, n/30. Company paid Reynold Company in full within discount period. Provide the journal entry that Shaw Company must make to record the payment.Hayao Co. purchases inventory from overseas and incurs the following costs: the cost of the merchandise is $50,000 with the credit terms of 2/10, n/30; FOB shipping point freight charges are $1,500; insurance during transit is $500; and import duties are $1,000. Hayao paid within the discount period and incurred additional costs of $1,200 for advertising, $5,000 for sales commissions and $500 for delivery of goods to the customers. Compute the cost that should be assigned to the inventory.Refer to the above transaction. Shaw paid Reynold Company in full within discount period. Provide the necessary journal entry to record the transaction. Debit Credit Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax was not included in price. Each unit of XOM had cost company $10.40. Provide the necessary journal entry to record the transaction. Debit Credit The following information pertains merchandise inventory of Bloom Company at the end of year.Apply Lower of Cost or Market rule and provide the necessary adjusting entry for adjustment of inventory account balance in the space provided on the Answer Sheets. Item Quantity on hand Unit Cost Selling Price Replacement Cost Net Realizable Value (Ceiling Price) Net Realizable Value Less Normal Profit (Floor Price) LCM Zoom 300 $90 $120 $105 $100 $75 Zap 600 $60…
- During June 1, Company B sold a merchandise for P 1,440,000. The mark up on this kind of sale is at 25% of cost. Company B allocated P 60,000 for trade-in allowance while the balance will be paid in monthly basis within 20 months. The trade-in details are as follows:a. Estimated Selling Price 100,000b. Reconditioning Cost 6,000c. Cost to Sell 4,000d. Gross profit on trade-in 20% Compute for the realized gross profit for the yearCom plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another 200 items at the price of $25 per item on 1 July 20X2. On 31 December 20X2, the replacement cost was $30 per item. On that date, Com plc sold 600 items and reported a profit of $9,100 using the first-in-first-out (FIFO) method to calculate the cost of sales. What would the profit be under replacement cost accounting? a. $6,000 b. $4,200 c. $3,200 d. $11,500 e. $12,500 f. $3,600Bernice Company purchased 30,00 lbs. of materials AB at $5 per lb. and incurred freight cost of $5,000. A cash discount of 5% is granted on payments within ten days. Freight in is treated as additional cost of materials purchased. What unit cost must be entered on the stock card for material AB assuming that the allowance method is used in accounting for discounts?
