Prepare income statements for the year ended December 31, 2020, as far as the "gross profit" line under each of the FIFO and weighted average methods, and calculate the gross profit rate for each. (Round Gross profit rate to 1 decimal place, e.g. 5.2% and all otheranswers to 2 decimal places, e.g. 52.75.)FIFO$Gross profit rateWeighted AverageGross profit rate%LINK TO ΤΕXTLINK TO TEXT Problem 8-5Bridgeport Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2020 year end:InvoiceUnitsUnit Invoice Gross InvoiceDateNumberTermsReceivedCostAmountJan. 1 balanceNet 30122$20$2,4401510624Net 3070201,400Mar. 15114371/5, net 3080161,2801/10, netJune 2021332110151,65030Sept.1/10, net27644102121,22412301/10, netNov. 243126992111,01230Totals576$9,006A physical inventory on December 31, 2020, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Bridgeport Limited uses a periodic inventory system and records purchases at their invoice price less discounts.During 2020, the average sales price per basketball was $22.25.Calculate the December 31, 2020 inventory using the FIFO formula. (Round answer to 2 decimal places, e.g. 52.75.)Ending inventory $lLINK TO TEXTLINK TO ΤΕXΤCalculate the December 31, 2020 inventory using the weighted average cost formula. (Round weighted average cost per unit and the final answer to 2 decimal places, e.g. 52.75.)Ending inventory $

Inventory: Inventory is the goods and material a business holds for sale. There are two methods for…

Problem 8-5 Bridgeport Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2020 year end: Invoice Number Unit Invoice Gross Invoice Units Received Date Terms Cost Amount Jan. 1 balance Net 30 122 $20 $2,440 15 10624 Net 30 70 20 1,400 Mar. 15 11437 1/5, net 30 80 16 1,280 1/10, net 30 June 20 21332 110 15 1,650 Sept. 12 1/10, net 30 27644 102 12 1,224 1/10, net 30 Nov. 24 31269 92 11 1,012 Totals 576 $9,006 A physical inventory on December 31, 2020, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Bridgeport Limited uses a periodic inventory system and records purchases at their invoice price less discount During 2020, the average sales price per basketball was $22.25. Calculate the December 31, 2020 inventory using the FIFO formula. (Round answer to 2 decimal places, e.g. 52.75.) Ending inventory sl LINK TO TEXT LINK TO TEXT Calculate the December 31, 2020 inventory using the weighted average cost formula. (Round weighted average cost per unit and the final answer to 2 decimal places, e.g. 52.75.) Ending inventory s

Problem 8-5 Bridgeport Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2020 year end: Invoice Number Unit Invoice Gross Invoice Units Received Date Terms Cost Amount Jan. 1 balance Net 30 122 $20 $2,440 15 10624 Net 30 70 20 1,400 Mar. 15 11437 1/5, net 30 80 16 1,280 1/10, net 30 June 20 21332 110 15 1,650 Sept. 12 1/10, net 30 27644 102 12 1,224 1/10, net 30 Nov. 24 31269 92 11 1,012 Totals 576 $9,006 A physical inventory on December 31, 2020, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Bridgeport Limited uses a periodic inventory system and records purchases at their invoice price less discount During 2020, the average sales price per basketball was $22.25. Calculate the December 31, 2020 inventory using the FIFO formula. (Round answer to 2 decimal places, e.g. 52.75.) Ending inventory sl LINK TO TEXT LINK TO TEXT Calculate the December 31, 2020 inventory using the weighted average cost formula. (Round weighted average cost per unit and the final answer to 2 decimal places, e.g. 52.75.) Ending inventory s

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 86PSA: Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets...

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Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets of $587,000 and the following equity account balances at December 31, 2019: Lances common stock is selling for $12 per share on December 31, 2019. Required: How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend. CONCEPTUAL CONNECTION How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-l stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?
Exercise 23-14 Flint Inc., a greeting card company, had the following statements prepared as of December 31, 2020. FLINT INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $6,900 Accounts receivable 61,900 50,500 Short-term debt investments (available-for-sale) 34,800 18,200 Inventory 39,900 59,800 Prepaid rent 4,900 4,000 Equipment 155,500 131,200 Accumulated depreciation—equipment (34,800 ) (25,300 ) Copyrights 45,700 50,200 Total assets $314,000 $295,500 Accounts payable $46,200 $39,700 Income taxes payable 4,000 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 7,900 10,000 Long-term loans payable 59,800 68,600 Common stock, $10 par 100,000 100,000…
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CP 14-8Assume the following income statement and balance sheet information:Service revenue (all cash) Operating expenses Salaries (all cash) Net income$17585$90Current assets 2020 2019 Cash $1,250 $1,600 Short-term invest. 100 200 $1,350 $1,800 Liabilities Borrowings 600 1,000 Stockholders' equity Common stock 200 300 Retained earnings 550 500 750 800 $1,350 $1,800Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non-current. No gain or loss occurred when common stock was repurchased.Required: 1. Calculate cash flow from operating activities. 2. Prepare the 2020 statement of changes in equity. 3. Calculate cash flow from financing activities. 4. (Appendix) Prepare a cash flow table. Show that cash effects net to a $450 outflow.
Exercise 12-11 Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom Galleries. The balance sheet of Blossom is given in an abbreviated form below. BLOSSOM GALLERIESBALANCE SHEETAS OF DECEMBER 31, 2017 Assets Liabilities and Stockholders’ Equity Cash $111,000 Accounts payable $50,800 Land 70,600 Notes payable (long-term) 301,200 Buildings (net) 200,600 Total liabilities 352,000 Equipment (net) 175,600 Common stock $206,600 Copyrights (net) 30,600 Retained earnings 29,800 236,400 Total assets $588,400 Total liabilities and stockholders’ equity $588,400 Moss and Blossom agree that: 1. Land is undervalued by $31,400. 2. Equipment is overvalued by $4,600. Blossom agrees to sell the gallery to Moss for $379,000.Prepare the entry to record the purchase of Blossom Galleries on Moss’s books. (Credit account titles are automatically…
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Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500Required:(a) Show the formulae and compute the value of the following for Barry:(i) Purchases(ii) Gross profit(iii)Net Profit
M3 Intermediate Accounting I Assessment Indicator Project You have been hired as an accountant for the Manhattan Trading Corporation and you need to record the following transactions in the General Journal & General Ledger (T-Accounts) for October 2022. The company owns and operates a retail electronics & appliance store. The company started on October 1, 2022. 1 Manhattan Trading Inc. opened with the following stockholders: Name Investment Stock Type Mary Jenkins $ 50,000 Preferred Stock Robert Moore $ 50,000 Common Stock Nancy Lee $ 50,000 50% Preferred 50% Common Note: Common Stock Par Value $ 1.00 Preferred Stock Par Value: $ 10.00 1 Issued 150,000 shares of common stock in exchange for $400,000 cash. 2 Purchased furniture and fixtures at a cost of $40,000. $5,000 was paid in cash and a 60-day note payable was signed for the balance owed. 3 Purchased inventory on account at a cost of $350,000. The company uses the perpetual inventory system. 4 Credit sales for the month…
Chapter 15 Quiz Hide or show questions Question Content Area A partial listing of accounts and ending balances for Carver, Inc., on December 31, 2020, is shown below: Investments in long-term notes receivable $40,000 Bonds payable 300,000 Temporary investment in equity securities available for sale 120,000 Premium on bonds payable 26,000 Common stock 180,000 Subscriptions receivable: common stock 120,000 Additional paid-in capital from preferred stock conversion 24,000 Retained earnings 650,000 Preferred stock 300,000 Long-term investment in equity securities available for sale 150,000 Additional paid-in capital on common stock 910,000 Common stock subscribed 20,000 Goodwill 46,000 Donated capital 35,000 Preferred stock subscribed 50,000 Additional paid-in capital on preferred stock 45,000 Following is additional information relative to the above accounts: The preferred stock is 8% cumulative with par value of…
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HW - Ch 20-2 Prepare journal entries to record the effects on Shannon’s accounting records at December 31, 2021, for each of the items described above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars not in thousands of dollars.) (1) Record the gain on sale of investment with an original cost of $186,000 for $232,000 (2) Record the adjustment of equity securities for the investment of $232,000 as on the date of sale. (3) Record the fair value adjustment. (4) Record the loss-lawsuit. (5) Record correction of inventory error. (6) Record correct assets that were incorrectly expensed. (7) Record the 2021 adjusting entry for depreciation. (8) Record the income tax expense.