amounts to the nearest dollar.)4-5 Adjusting Entries for Inventory of Supplies. The Village of Baxter uses thepurchases method of accounting for its inventories of supplies in the GeneralFund. GASB standards, however, require that the consumption method be usedfor the government-wide financial statements. Because its computer system isvery limited, the Village uses a periodic inventory system, adjusting inventorybalances based on a physical inventory of supplies at year-end. When suppliesare received during the year, the Village records expenditures and expenses inthe general journals of the General Fund and governmental activities, respee-tively. The Village's inventory records showed the following information for thefiscal year ending December 31, 2011:Balance of inventory, December 31, 2010Purchases of inventory during 2011Balance of inventory, December 31, 2011$140,000720,000155,000Requireda. Provide the required adjusting entries at the end of 2011, assuming that theDecember 31, 2011, balance of Inventory of Supplies has been confirmed byphysical count. Make entries in the general journals of both the General Fund(omitting subsidiary detail) and governmental activities at the government-wide level.b. Assume that the General Fund uses the consumption method for reportinginventories of supplies rather than the purchases method. Make the requiredadjusting entries for the General Fund and government21 activities at the

Inventory recording can be done in various ways which is chosen by the business according to the…

Provide the required adjusting entries at the end of 2011, assuming that the December 31, 2011, balance of Inventory of Supplies has been confirmed by physical count. Make entries in the general journals of both the General Fund (omitting subsidiary detail) and governmental activities at the government-

Provide the required adjusting entries at the end of 2011, assuming that the December 31, 2011, balance of Inventory of Supplies has been confirmed by physical count. Make entries in the general journals of both the General Fund (omitting subsidiary detail) and governmental activities at the government-

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 5MC: The moving average inventory cost flow assumption is applicable to which of the following inventory...

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A government would account for inventory the same as would a business, with one additional feature. The Boyd School District began a recent fiscal year with $3,000 of supplies in stock. During its fiscal year, it engaged in the following transactions relating to supplies: It purchased supplies at a cost of $22,000. It paid for $19,000 of the supplies. It used $20,000 of the supplies and therefore had $5,000 in supplies inventory at year-end. Record the transactions assuming that the district uses the consumption method and purchase method.
A government would account for inventory the same as would a business, with one additional feature.The Boyd School District began a recent fiscal year with $3,000 of supplies in stock. During its fiscal year, it engaged in the following transactions relating to supplies:• It purchased supplies at a cost of $22,000.• It paid for $19,000 of the supplies.• It used $20,000 of the supplies and therefore had $5,000 in supplies inventory at year-end.Record the transactions assuming that the district uses the consumption method.
Sohar township issued purchase orders totalling RO 300,000, which were properly charged to encumbrances at that time. The part of goods received and related invoices at the encumbered amounts RO 150,000 before year-end and paid. The encumbrances balance at the year-end is a. None of the options b. RO 250,000 c. RO 150,000 d. RO 300,000
A township issued purchase orders totalling RO 300,000, which were properly charged to encumbrances at that time. The goods received and related invoices at the encumbered amounts RO 300,000 before year-end and paid RO 270,000. The balance of accounts payable at the year-end is a. RO 270,000 b. RO 300,000 c. None of the options d. RO 30,000
A government unit has opening balance of office supplies amounting to RO200. The purchases made during the year is RO 170. The closing balance of inventory is RO 75. Under consumption method, the inventory expenditure amounts to:
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? 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.
Use the following information for the next two questions:Shipments received from the home office are billed at 120% above cost. During theyear, the branch received shipments billed at ₱480,000 and returned damaged goodswith billed price of ₱96,000. The branch has an ending inventory of ₱120,000, at billedprice. The branch reported loss of ₱40,000 in its individual financial statements. Q1: How much is the balance of the “allowance for markup” account before year-end adjustments? Q2: How much is the true profit of the branch to be taken up in the home officebooks?Problem #10:The home office bills shipments of merchandise to its branch at a markup of 20% basedon cost. At the beginning of the period, the “Allowance for markup” account has a creditbalance of ₱8,000. During the period, the home office made shipments of goods worth₱960,000, at cost. The branch reported an ending inventory of ₱480,000, at billed price.How much is the realized mark-up?
The home office bills its branch for shipment of goods at 25% above cost. During the year, goods costing P300,000 were shipped by the home office to the branch. At the end of the year, after appropriate adjustments are recognized, the allowance for overvaluation of branch inventory account credit balance was P14,000. The branch ending inventory at cost was:
Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $798,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $120,000. The trucks were purchased in a state that applies a 5% sales tax. 4. The store sold 25 gift cards for $100 per card. At year-end, 20 of the gift cards are redeemed. Schultz expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December…
Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $798,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $120,000. The trucks were purchased in a state that applies a 5% sales tax. 4. The store determined it will cost $100,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Schultz estimates the fair value of the obligation at December 31 is $84,000. Instructions Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal…
The home office sells merchandise to its branch at 120% of cost. The branch was established several years ago with the policy that all its merchandise would be acquired from the home office. The following information is available from the records of the home office and the branch: Allowance for overvaluation in branch inventory, P103,500; branch beginning inventory, P81,000; branch ending inventory, P135,000. How much is the shipment recorded in the home office book for the current period?
Listed below are selected transactions of Ben’s HomeGoods Store for the current year ending December 31, 2022. a) During December, credit card sales totaled $675,000, which includes the 8% sales tax that must be remitted to the state by the fifteenth day of the following month. (At time of sale, the total amount is recorded in Sales.) b) On December 1, the store received $5,000 from the local community theater for the rental of certain furniture to be used in a stage production during December and January. The furniture will be returned on February 1. c) On December 31 the store was notified it will be required to restore the area (considered a land improvement) surrounding one of its parking lots, when the store moves in 5 years. Ben determined it will cost $78,000 in 2027. Ben estimates the fair value of the asset retirement obligation on December 31, 2022 is $61,500. Prepare the necessary journal entries necessary to record the above transactions as they occurred and any adjusting…