SANTAC is a retailer of computer accessories. SANTAC beginning inventory is Rs.1,200,000 and its purchase during the year are Rs.700,000. Its ending inventory is Rs.300,000. Make the closing entry necessary given that SANTAC uses a periodic inventory system.
Q: Best Hardware uses a periodic inventory system. Its inven-tory was $38,000 at the beginning of the…
A: Step 1 Perpetual Inventory management system, It is a system to manage the inventory and reconcile…
Q: The following purchase transactions occurred during the last few days of Whilczel Company's business…
A: In Periodic Inventory system, Inventory valuation is done at the end of the year, Rather than…
Q: The company had beginning inventory of $1,500 and net purchases of $4,800. At the end of the year,…
A: The question is related to determination of goods available for sale for the year. It will be…
Q: Fabrika Enterprise (FE) is a retail business which sells fabric. FE uses a perpetual inventory…
A: Journal: Journal is used to record business transactions of an enterprises In FOB shipping point,…
Q: Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June,…
A: For every business, purchases and sales are the most important of transactions. The purchases and…
Q: Brueser Company has the following account balances: Sales Revenue $195,000, Sales Discounts $2,000,…
A: Journal entries are prepared to record the financial and non financial transactions of the business.
Q: Kennedy Company had the following account balances at year-end: cost of goods sold $85,000;…
A: Closing Entry: Closing entries are passed at the end of an accounting period to close the balances…
Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance…
A: a.
Q: Marvin Company has a beginning inventory of 12 sets of paints at a cost of $1.50 each. During the…
A: Total units available for sale = 12+4+6+6+10 = 38 units Particulars No. of Units Cost per…
Q: Easy Software uses a periodic inventory system. Its inventory was $36,000 at the beginning of the…
A: Cost of Good Sold - It is refer to the direct cost associated with production of goods or services.…
Q: On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for…
A: When the advance is received from a customer, it shall be recorded as advance only and not as…
Q: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…
A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300
Q: NIZWA ELECTRONICS is doing a merchandise business. The business is selling all electronics items.…
A: Using LIFO method, new units are sold first and old units are left in the stock.
Q: April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: The following accounts and balances are taken from the year-end adjusted trial balance of the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: NIZWA ELECTRONICS is a Retail Merchandise trader. The business is selling all electronics items. The…
A: FIFO is the first in first out inventory method which says that inventory which is purchased first…
Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…
A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that…
Q: On March 12th, Company B sold $800 of inventory to a customer for $1,400. The customer paid $400 and…
A: Sales partially on credit and partially on a cash basis: when a customer pays a portion of sales…
Q: In its first year of operation, Flip Co, which uses the perpetual method and records purchases at…
A: Income statement refers to the financial statement prepared to determine the profit or loss earned…
Q: Inamra Inc. is a clothing manufacturer. The firm uses a periodic inventory system. Inamra…
A: Whenever goods are sold, cash account is debited and sales a/c is to be credited. In case of sales…
Q: You have been provided with the following information for LnS Shoe Outlet which accounts for its…
A:
Q: Riverbed Company had the following account balances at year-end: Cost of Goods Sold $62,380,…
A: Perpetual Inventory System: Perpetual inventory systems are programs that continually estimate your…
Q: The company is using the periodic inventory system, has merchandise inventory costing 140 on hand at…
A: The cost of merchandise sold is a term used for the cost incurred for the manufacturing of…
Q: Small Musical Shop uses the perpetual inventory system. On April 2, Small Musical sold merchandise…
A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…
Q: Pina Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1,…
A: The cost of goods sold refers to the cost of making the number of goods sold by an entity. But, it…
Q: A retailer uses the periodic inventory system. At year end, the following information was available:…
A: The following date is given: Beginning Inventory: $52,000Purchases: 556,000Freight in: $16,300…
Q: The business had 200 units in inventory at 1st February 2018 valued at RO 20. On 10th February…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Raymond Company and Geeslin Company both use a periodic inventory system. The following transactions…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: Assuming that a ABC merchandise business purchased 500 numbers of Office chairs for OMR 40 each on…
A: Credit terms 5/20, n/60 means that discount of 5% will be allowed of payment is made within 20 days…
Q: Bronson Inc. is a retailer of sporting goods. Bronson’s beginning inventory is $80,000 and…
A: Periodic inventory system: Periodic inventory system is a system, in which the inventory is updated…
Q: hile the home
A: Inventory is recorded in income statement and shown as assets in balance sheet also.
Q: Polk Company uses a perpetual inventory system and had the following transactions during November:…
A: Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit…
Q: NIZWA ELECTRONICS is doing a merchandise business. The business selling all electronics items. The…
A: There are various methods of inventory valuation one of them is LIFO. LIFO stands for Last in Last…
Q: During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of…
A: Purchase of Inventory from Noah discount = $ 1590 * 2% = $ 31.8 Purchase of Inventory from Emma…
Q: All Things Auto are retailers who purchase and sell vehicle parts & accessories, including…
A: Purchase price on Oct 22 = 18175 * 96% ( due to discount ) = $ 17448 Purchase price on Nov 12 = $…
Q: Tool Retailer operates in a city where HST 11% is charged on all goods and services. During June…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: Assuming that a Retail Merchandise business purchased 500 numbers of HP three in one printer for OMR…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 82…
A: Journal entries are the basic method of recording transactions in the books of accounts. These are…
Q: At year-end, the perpetual inventory records of Blue Company showed merchandise inventory of…
A: Perpetual inventory system is the system in which transaction to purchase and sale of goods are…
Q: Venus Company is a retailer of fine leather goods and prepares its financial statements on December…
A: Periodic Inventory System: Under this system, the balance of the merchandise inventory is not…
Q: Suppose Dave’s Discount’s Merchandise Inventory account showed a balance of $8,000 before the year-…
A:
Q: Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries…
A: A perpetual inventory system uses electronic records rather than physical lists to continuously…
Q: Camino Jet Engines, Inc. Is a supplier of jet engine parts. The company began the most reecent…
A: FIFO: FIFO method of inventory valuation assumes that the goods purchased first are removed first…
Q: Take me to the text The following information was taken from the financial records of Thornhill…
A: Cost of sales :— It represents cost of goods sold. It is the total cost of manufacturing of product…
Q: nventory was determined by physical count on October 31 as P77,500. Required: Compute the…
A: solution concept In case of FOB shipping terms the goods has to be accounted for in the inventory of…
Q: ABC is a Wholesale Merchandise trader. He uses periodic inventory system. He received an order from…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Teal Mountain, Inc. uses a perpetual inventory system. Its beginning inventory consists of 200 units…
A: Account Titles and Explanation Debit Credit Inventory (225 units * $220) $49,500…
Step by step
Solved in 2 steps with 1 images
- The Supplies account has a 1,400 balance. A physical inventory is taken at the end of the fiscal year, and the amount on hand is determined to be 300. What adjusting entry is required to record the supplies used? a. Supplies 300 DR, Cash 300 CR b. Supplies Expense 1,400 DR, Supplies 1,400 CR c. Supplies 1,100 DR, Supplies Expense 1,100 CR d. Supplies Expense 1,100 DR, Supplies 1,100 CR e. None of the aboveRecording Sale and Purchase Transactions Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordan engaged in the following transactions its first month of operations: a. On June1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of running shoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of $85 per pair, and the running shoes were purchased at a cost of $60 per pair. Jordan paid Mole Trucking $310 cash to transport the shoes from the manufacturer to Jordans warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on June 1 and arrived on June 4. b. On June 2, Jordan purchased 88 pairs of cross-training shoes for cash. The shoes cost Jordan $65 per pair. c. On June 6, Jordan purchased 125 pairs of tennis shoes on credit. Credit terms were 2/10, n/25. The shoes were purchased at a cost of $45 per pair. d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes in Transaction a. e. On June 12, Jordan determined that $585 of the tennis shoes were defective. Jordan returned the defective merchandise to the manufacturer. f. On June 18, Jordan sold 50 pairs of basketball shoes at $116 per pair, 92 pairs of running shoes for S85 per pair, 21 pairs of cross-training shoes for $100 per pair, and 48 pairs of tennis shoes for $68 per pair. All sales were for cash. The cost of the merchandise sold was $13,295. No sales returns are expected. g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. The cost of the merchandise returned was $850. h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $116 per pair and 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,675. i. On June 30, Jordan paid for the June 6 purchase of tennis shoes minus the return on June 12. j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for S85 each. The shoes were shipped F.O.B. destination and arrived at Jordan on July 3. Required: 1. Prepare the journal entries to record the sale and purchase transactions for Jordan during June 2019. 2. Assuming operating expenses of $5,300 and income taxes of $365, prepare Jordans income statement for June 2019.Transaction Analysis Pollys Cards $ Gifts Shop had the following transactions during the year: Pollys purchased inventory on account from a supplier for $8,000. Assume that Pollys uses a periodic inventory system. On May 1, land was purchased for $44,500. A 20% down payment was made, and an 18-month, 8% note was signed for the remainder. Pollys returned $450 worth of inventory purchased in (a), which was found broken when the inventory was received. Pollys paid the balance due on the purchase of inventory. On June 1, Polly signed a one-year, $15,000 note to First State Bank and received $13,800. Pollys sold 200 gift certificates for $25 each for cash. Sales of gift certificates are recorded as a liability. At year-end, 35% of the gift certificates had been redeemed. Sales for the year were $120,000, of which 90% were for cash. State sales tax of 6% applied to all sales must be remitted to the state by January 31. Required Record all necessary journal entries relating to these transactions. Assume that Pollys accounting year ends on December 31. Prepare any necessary adjusting journal entries. What is the total of the current liabilities at the end of the year?
- A partial work sheet for The Fan Shop is presented here. The merchandise inventory at the beginning of the year was 52,300. P. G. Ochoa, the owner, withdrew 30,500 during the year. Required 1. Prepare an income statement. 2. Journalize the closing entries. Check Figure Cost of Goods Sold, 206,120A firm is preparing to make adjusting entries at the end of the accounting period. The balance of the merchandise inventory account is 100,000. If the firm is using the perpetual inventory system, what does this balance represent?Journalize the required adjusting entries for the year ended December 31 for Butler Spa and Pool Accessories. Butler Spa and Pool Accessories uses the periodic inventory system. ab. On December 31, a physical count of inventory was taken. The physical count amounted to 22,624. The Merchandise Inventory account shows a balance of 21,696. c. On July 1 of this year, 2,400 was paid for a one-year insurance policy. d. On November 1 of this year, 420 was paid for three months of advertising. e. As of December 31, the balance of the Unearned Membership Fees account is 15,600. Of this amount, 9,200 has been earned. f. Equipment purchased on May 1 of this year for 8,000 is expected to have a useful life of five years with a trade-in value of 500. All other equipment has been fully depreciated. The straight-line method is used. g. As of December 31, three days wages at 250 per day had accrued. h. As of December 31, the balance of the supplies account is 4,200. A physical inventory of the supplies was taken, with an amount of 1,650 determined to be on hand.
- Here are the accounts in the ledger of Mishas Jewel Box, with the balances as of December 31, the end of its fiscal year. Here are the data for the adjustments. Assume that Mishas Jewel Box uses the perpetual inventory system. a. Merchandise Inventory at December 31, 124,630. b. Insurance expired during the year, 1,294. c. Depreciation of building, 3,300. d. Depreciation of store equipment, 6,470. e. Salaries accrued at December 31, 2,470. f. Store supplies inventory (on hand) at December 31, 1,959. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b)A physical count shows that merchandise inventory costing 51,800 is on hand as of December 31, 20--. (c, d, e)Neff estimates that customers will be granted 2,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,200. (f)Supplies remaining at the end of the year, 600. (g)Unexpired insurance on December 31, 2,600. (h)Depreciation expense on the building for 20--, 5,000. (i)Depreciation expense on the store equipment for 20--, 3,000. (j)Wages earned but not paid as of December 31, 1,800. (k)Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is 3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Prepare the journal entry or entries to recognize this return if the company uses A. the perpetual inventory system B. the periodic inventory system
- Costco, Walmart, Nordstrom: Inventory turnover and number of days sales in inventory The general merchandise retail industry has a number of segments represented by the following companies: Company Name Merchandise Concept Costco Wholesale Corporation Membership warehouse Walmart Stores, Inc. Discount general merchandise Nordstrom, Inc. Fashion department store For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies: Costco Walmart Nordstrom Cost of goods sold 98,458 365,086 8,406 Inventories: Beginning of year 7,894 44,858 1,531 End of year 8,456 45,141 1,733 A. Determine the inventory turnover ratio for all three companies. (Round all calculations to one decimal place.) B. Determine the number of days sales in inventory for all three companies. (Use 365 days and round all calculations to one decimal place.) C. Interpret these results based on each companys merchandising concept.ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Sandra Owens owns a business called Sandras Sporting Goods. Her beginning inventory as of January 1, 20--, was 33,000, and her ending inventory as of December 31, 20--, was S36,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.Recording Sale and Purchase Transactions Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetual inventory system and engaged in the following transactions during April 2019, its first month of operations: a. On April 2, Alpharack purchased, on credit, 360 Wilbur T-100 tennis rackets with credit terms of 2/10, n/30. The rackets were purchased at a cost of S30 each. Alpharack paid Barker Trucking $195 to transport the tennis rackets from the manufacturer to Alpharacks warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on April 2. b. On April 3, Alpharack purchased, for cash, 115 packs of tennis balls for $10 per pack. c. On April 4, Alpharack purchased tennis clothing, on credit, from Designer Tennis Wear. The cost of the clothing was $8,250. Credit terms were 2/10, n/25. d. On April 10, Alpharack paid for the purchase of the tennis rackets in Transaction a. e. On April 15, Alpharack determined that $325 of the tennis clothing was defective. Alpharack returned the defective merchandise to Designer Tennis Wear. f. On April 20, Alpharack sold 1 18 tennis rackets at $90 each, 92 packs of tennis balls at $12 per pack, and $5,380 of tennis clothing. All sales were for cash. The cost of the merchandise sold was $7,580 and no sales returns are expected. g. On April 23, customers returned $860 of the merchandise purchased on April 20. The cost of the merchandise returned was $450. h. On April 25, Alpharack sold another 55 tennis rackets, on credit, for $90 each and 15 packs of tennis balls at $12 per pack, for cash. The cost of the merchandise sold was $1,800. i. On April 29, Alpharack paid Designer Tennis Wear for the clothing purchased on April 4 minus the return on April 15. j. On April 30, Alpharack purchased 20 tennis bags, on credit, from Bag Designs for $320. The bags were shipped F.O.B. destination and arrived at Alpharack on May 3. Required: 1. Prepare the journal entries to record the sale and purchase transactions for Alpharack during April 2019. 2. Assuming operating expenses of $8,500 and income taxes of $1,180, prepare Alpharacks income statement for April 2019.