roblem 3-4 nventories (LO 3.2) evin owns a retail store, and during the current year he purchased $578,000 worth of inventory. Kevin's beginning inventory was $58,000, is ending inventory is $79,000. During the year, Kevin withdrew $560 in inventory for his personal use. Assume that he uses the cost meth alue the inventory and there was no change in determining quantities, costs, or valuations between opening and closing inventory. Ise Part III of Schedule C below to calculate Kevin's cost of goods sold for the year. nter amounts as positive numbers. Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: Cost 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation ... No 35 Inventory at beginning of year. If different from last year's dlosing inventory, attach explanation..... 35 36 Purchases less cost of items withdrawn for personal use. 36 37 Cost of labor. Do not include any amounts paid to yourself . 37 38 Materials and supplies . 38 39 Other costs.. 39 40 Add lines 35 through 39 40

roblem 3-4 nventories (LO 3.2) evin owns a retail store, and during the current year he purchased $578,000 worth of inventory. Kevin's beginning inventory was $58,000, is ending inventory is $79,000. During the year, Kevin withdrew $560 in inventory for his personal use. Assume that he uses the cost meth alue the inventory and there was no change in determining quantities, costs, or valuations between opening and closing inventory. Ise Part III of Schedule C below to calculate Kevin's cost of goods sold for the year. nter amounts as positive numbers. Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: Cost 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation ... No 35 Inventory at beginning of year. If different from last year's dlosing inventory, attach explanation..... 35 36 Purchases less cost of items withdrawn for personal use. 36 37 Cost of labor. Do not include any amounts paid to yourself . 37 38 Materials and supplies . 38 39 Other costs.. 39 40 Add lines 35 through 39 40

Name: 41 Inventory at end of year41....42 Cost of goods sold. Subtract line
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Description: 41 Inventory at end of year41....42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 442 Problem 3-4Inventories (LO 3.2)Kevin owns a retail store, and during the current year he purchased $578,000 worth of invento

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 51E: Exercise 3-51 Adjustment for Supplies The downtown location of Chicago Clothiers purchases large...

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Question 3: On 20 June 2019 , the warehouse and attached business premises of Fashion Wear Cloth Mill SAOC were affected by fire. The following information is available from the salvaged books of account. Amount (OMR) Stock of goods @ 10% lower than cost as on January 1, 2019 216,000 Purchases less returns (January 1, 2019, to June 20, 2019) 280000 Sales less returns (January 1, 2019, to June 20, 2019) 620000 Additional Information : Sales up to June 20, 2019, include OMR 80,000 worth of goods which had not been dispatched. Purchases up to June 20, 2019, did not include OMR 40,000 worth of goods for which purchase invoices had not been received from the suppliers, but the goods had been received in stored in the warehouse. Past records show the gross profit rate of 25 % Value of goods salvaged OMR 31,000 Fashion Wear had insured their stock for OMR 85,000. You are required to compute the amount of claim to be lodged with the insurer justifying the…
Question 2 Use the following question to answer a question that follows.Mr Lesang’s Statement of Comprehensive Income for the year ended 30 April 2020Pula PulaPulaSales 259,870Less Sales returns (5,624)Net Sales 254,246Less cost of goods soldOpening inventory 15,654Add purchases 135,680Add carriage inwards 11,830Less Returns Outwards (13,407)Net purchases 134,103Cost of goods available for sale 149,757Less closing inventory (17,750)Cost of goods sold 132,007Gross profit 122,239Add other income:Discount received. 1,750123,989Less expenses & losses:Allowance for doubtful debts 223Discounts allowed 2,306Carriage outwards 4,562Rent, rates and insurance 25,973Less prepaid rates (5,435)Less prepaid insurance (1,120) 19,418Heating and lighting 11,010Add accrued heating 1,360 12,370& lightingPostage, stationery and telephone 2,410Advertising 5,980Salaries & wages 38,521Bad debts 2,008Mr Lesang’s Statement of Financial position as at 30 April 2020Cost Accumulated depreciation Net…
Question 5Consider the following transactions that occurred in April 2013 for Kings:April 3 Purchased inventory on terms 1/10, n/e.o.m. $7,000April 4 Purchased inventory for cash $1,800April 6 Returned $700 of inventory from April 4 purchaseApril 8 Sold goods on term of 2/15, n/35 of $6,000 that cost $2,940April 10 Paid for goods purchased on April 3April 12 Received goods from April 8 sale of $500 that cost $220April 23 Received payment from April 8 customerApril 25 Sold goods to Harrisons for $1,200 that cost $450. Terms of n/30 were offered.As a courtesy to Harrisons, $125 of freight was added to the invoice for whichcash was paid directly to UPS by Kings. April 29 Received payment from Harrison’sRequired:6- 6 -1. Journalize April transactions for kings. No explanations are required?
Problem 3-41 (LO 3-3, LO 3-4) (Algo) Skip to question [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $53,000 to use in its business. In year 3, Longworth sold the machine for $42,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,800. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 3-41 Part-c (Algo) c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $18,500?
Exercise 3-1A (Static) Determining the cost of financing inventory LO 3-1 On January 1, Year 1, Jana started a small flower merchandising business that she named Jana’s Flowers. The company experienced the following events during the first year of operation: Started the business by issuing common stock for $30,000 cash. Paid $19,000 cash to purchase inventory. Sold merchandise that cost $10,000 for $21,000 on account. Collected $16,000 cash from accounts receivable. Paid $3,750 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. b-1. Prepare an income statement. b-2. Prepare a balance sheet. b-3. Prepare a statement of cash flows. c. Since Jana sold inventory for $21,000, she will be able to recover more than half of the $30,000 she invested in the stock. Do you agree with this…
Choos only the LETTER of answer: 1. Merchandise shipped FOB shipping point on the last day of the year should ordinarily be included in * a. The seller's inventory balance b. The buyer's inventory balance c. Neither the buyer's nor seller's inventory balance d. Both the buyer's and the seller's inventory balance 2. Which of the following would not be reported as inventory? * a. Machinery acquired by a manufacturing entity for use in the production process b. Land acquired for resale by a real estate firm c. Shares and bonds held for resale by a brokerage firm d. Partially completed goods held by a manufacturing entity
Problem 3In connection with your observation of the DalandanManufacturing Company, you reviewed its inventory as of December 31, 2019 and found the following items: ➢A packing case containing a product costing P100,000 was standing in the shipping room when the physical inventory was taken. It was not included inthe inventory because it was marked “Hold for shipping instructions.” The customer’s order was dated December 18, but the case was shipped and the costumer billed on January 10, 2020. ➢Merchandise costing P600,000 was received on December 28, 2019, and the invoice was recorded. The invoice was in the hands of the purchasing agent; it was marked “On consignment”. ➢Merchandise received on January 6, 2020, costing P800,000 was entered in purchase register on January 7. The invoice showed shipment was made FOBshipping point on December 31, 2019. Because it was not on hand during the inventory count, it was not included. ➢A special machine costing P200,000, fabricated to order for a…
The Independent Institute of Education (Pty) Ltd 2022Page 4 of 7Q.2.2Jacob Nkono started a new business called Nkono’s Trading on 1 June 2021.Nkono’s Trading uses the perpetual inventory system.Jacob Nkono had the following funds available for the business, R100 000 in the business’s bank account of which R50 000 was from his personal funds and R50 000 was from a bank loan obtained.He entered into the following transactions during June 2021:June 2- Purchased merchandise via EFT, R20 000June 8- Purchased computer equipment on credit, R15 000June 21- Withdraw R3 000 cash for the petty cash.June 30- Paid R5 000 off the bank loan.Calculate Jacob’s equity in his business on 30 June 2021 by showing the effect of all transactions on the accounting equation.Ignore VAT.
Comprehensive Problem 3-1 Gordon Temper is a single taxpayer (birthdate July 1, 1986 and Social Security number 242-11-6767) who operates a food truck that specializes in food from South Africa. His business is named "Mobile Peri Peri" and although the truck moves around quite a bit, he generally parks it in an office park where he maintains an office and a supply of inventory. The business address is 150 Erie Street, Laramie, WY 82070. The principal business code is 722300. Gordon's food truck business is fairly new, so he also works part-time as a cook at a steak house restaurant in Laramie. His 2023 Form W-2 follows (see separate tab). Gordon provided the following financial information related to Mobile Peri Peri: Revenues $80,000 Beginning Inventory 5,600 Purchases 43,000 Ending inventory 5,800 Truck rental 24,000 Office rental 8,600 Advertising 700 Insurance 3,000 Food license 500 Uniforms 200 Dues 100 Travel 1,600 Office expense 400 Mobile Peri Peri uses the cash method of…
Exercise 3-51 Adjustment for Supplies The downtown location of Chicago Clothiers purchases large quantities Of supplies, including plastic garment bags and paper bags and boxes. At December 31, 2019, the following information is available concerning these supplies: Supplies inventory, 1/1/2019 $4,150 Supplies inventory, 12/31/2019 5,220 Supplies purchased for cash during 2019 12,690 All purchases of supplies during the year are debited to the supplies inventory. Required: What is the expense reported on the income statement associated with the use of supplies during 2019? What is the adjusting entry at December 31, 2019? By how much would assets and income be overstated or understated if the adjusting entry were not recorded?
Question 2Showbiz Sportswear completed the following selected transactions during 2008 & 2009:2008Dec. 31 Estimated that uncollectible-account (bad-debt) expense for the year was 1% of credit sales of $450,000 and recorded the amount as expense. Use the allowance method.Dec. 31 Made the closing entry for uncollectible-account expense.2009Feb. 4 Sold inventory to Marian Holt, $1,500 on account. Ignore cost of goods sold.July 1 Wrote off Marian Holt’s account as uncollectible after repeated effort to collect from her.Nov. 19 Received $1,500 from Marian Holt, along with a letter apologizing for being so late.Reinstated Holt’s account in full and recorded the cash receipt.Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Kaycee Britt, $2,300; Tim Sands, $500 and Anna Chin, $1,200.Dec. 31 Estimated that uncollectible expense for the year was 1% of credit sales of $480,000, and recorded the expenseDec. 31 Made the closing entry for uncollectible-account…
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