SG Corporation started operating a branch on May 1, 2020 with a shipment of merchandise billed at P250,000. Additional shipments during the month were billed at P125,000. The branch returned damaged merchandise worth P10,000. Inter-office shipments are billed uniformly at 125% of cost. On May 31, 2020, the branch reported a net loss of P52,500 and an inventory of P150,000. What is the branch net income (loss) reflected in the combined income statement for May 2020?

Q: Bayabas Company started operations on January 1, 2021. Following data are available as of June 30,…

A: Particulars Amount Purchase of Merchandise P9,000,000 Less: Ending inventory 1,500,000 Cost of…

Q: Peter Company reported the following amounts for the year ended 31 December 2020: Inventory at 1…

A: 1) Depreciable base = $200,000 (Cost) - $10,000 (Residual Value) = $190,000 Life: 5 years…

Q: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its…

A: Merchandising inventory is the current asset of the firm and is the goods in which is firm is…

Q: The records of Now United Department Store report the following data for the month of January 2020:…

A: Inventory refers to raw materials that is used in production of final goods during  an accounting…

Q: Presented below is information for Oakley Company for the month of March 2020. Cost of goods sold…

A: Multi-step income statement: It is the presentation of a normal income statement in a more detailed…

Q: Johnson Co. began operations on January 1, 2021.  During the next 2 years, they completed a number…

A: The bad debt expense = 2% of outstanding accounts receivables Bad debt expense  for year 1 = 2% (…

Q: Duke Company's records show the following account balances at December 31, 2021: Sales revenue S…

A: Income Statement:-It is a statement in which revenue and expenses during the period recorded result…

Q: ational Co. has just ended the calendar year making a sale in the amount of P250,000 of merchandise…

A: Net profit refers to the final sum of money earned or gained by an entity in the desired period for…

Q: The following selected information is for Sandhill Company for the year ended January 31, 2021:…

A: Solution:- Preparation of multiple-step income statement as follows under:- Formulas:- 1)Cost of…

Q: 4) Selected accounts follow of Bramble Limited at December 31, 2020: Finished Goods Inventory…

A: A balance sheet is a representation of an individual's personal or corporation's financial balances…

Q: Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2020. The branch…

A: Given data, Branch reported income of P130,000 for 2020 Oro shipped inventory to the branch at a…

Q: Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2017…

A: Correct option is D  i.e. $150000

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: The Relief Goods Corp. reported profit before taxes of ₱370,000 for 2019 and ₱526,000 for 2020. A…

A: Merchandising inventory is the closing inventory of the company held by the firm at the end of the…

Q: Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch…

A: Step 1 Branch accounting is a bookkeeping system in which separate accounts are maintained for each…

Q: Bayabas Company started operations on January 1, 2021. Following data are available as of June 30,…

A: Accounts receivable is the outstanding amount from the parties to whom the credit sales has been…

Q: Hanggang Dito Na Lang Company reported the following information for the current year: Sales…

A: Gross margin = sales - cost of goods sold Income from continuing operations = Gross margin -…

Q: During 2020, Reliable Hardware Store had the following selected accounts and balances: Net…

A: The inventory shrinkage would be recorded as a loss. The cost of goods sold would be computed by…

Q: Bayabas Company started operations on January 1, 2021. Following data are available as of June 30,…

A: Cost of Goods Sold = (Inventory, January 1 + Purchases) - Inventory, June 30…

Q: Richerfold Ltd had the following transactions and 2020: inventory valued at $3,500,000 as at…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: Dara Company's accounting records indicated the following information for 2021: Inventory- January 1…

A: Solution:- calculation of estimate cost of missing inventory as follows under:- Introduction:-…

Q: The following selected information is for Sandhill Company for the year ended January 31, 2021:…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: The following are selected ledger accounts of Spock Corporation at December 31, 2020. Cash   $…

A: A condensed income statement is prepared by the company to help users in assessing the financial…

Q: Home Office transfers inventory to its Branch at a 20% mark-up on cost. During 2020, inventory…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: On September 30, 2020, a fire at Cherimoya Company's warehouse caused severe damage to its entire…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Nana Adom Company Limited is a wholesale company that deals in general goods. the following…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: On 1st Nov 2020, a business had inventory of $380,000. During the month,  sales totalled $650,000…

A: Data given: Opening inventory = $380,000 Purchase during the month= $480,000 Sales during the month…

Q: 1. The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000…

A: Branch and Head office concept comes in to existence  where company is running from more than one…

Q: What is the cost of goods sold to be reported in the 2016 combined statement of comprehensive income

A: Jose Corporation transferred inventory from its home office to its Laguna branch at a billed price…

Q: BBM Company lost most of its inventory in a fire in December, 2021, just before the year-end…

A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold

Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…

A: Ratio analysis is a technique that is used by the users of the financial statement in order to know…

Q: Duke Company’s records show the following account balances at December 31, 2021:         Sales…

A: Comprehensive income statement includes net income and comprehensive income. Comprehensive income…

Q: How much is the cost of goods available for sale of the branch?Required to answer. Single line text.

A: Cost of Goods Sold is the cost of producing the goods, and it consists of direct materials, direct…

Q: Duke Company’s records show the following account balances at December 31, 2021:         Sales…

A: Solution:- Preparation of a single, continuous multiple-step statement of comprehensive income for…

Q: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its…

A: Goods sent on a consignment basis refers to when goods are sent by the owner (consignor) to an agent…

Q: Duke Company’s records show the following account balances at December 31, 2021:         Sales…

A: Income statement refers to the statement prepared by the company in which recording of revenue along…

Q: Presented below are selected accounts of Flint Company at December 31, 2020. Inventory (finished…

A: Current Assets - It is assets of the company which are expected to be sold or used in the business…

Q: CDE Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were…

A: Cost of goods sold means that value of opening stock plus purchases minus closing stock but cost of…

Q: On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account.  The controller…

A: Ending inventory: It implies to the total raw materials, work in process, and finished goods that…

Q: Selected accounts follow of Riverbed Limited at December 31, 2020: Finished Goods Inventory $166,000…

A: Current assets includes cash , Accounts receivables , Inventory , Interest receivable , short term…

Q: On January 15, 2020, a strong monsoon hit the country and destroyed all the inventory of Aeirron…

A: Gross profit is the profit earned by the company from their operating activities. It can be…

Q: Dynamite Company’s accounting records indicated the following for 2020: • Inventory, January 1-…

A: Gross profit  ratio = Gross profit / Sales Gross profit = Sales - Cost of goods sold

Q: On June 30, 2021, a fire at Norjanna Company’s only warehouse caused severe damage to its inventory.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The following information are extracted from the books and records of Pinoy Company and its branch.…

A: Answer: Given Sales 200,000Shipments to branch 60,000Shipments from home office 80,000Purchases…

Q: How much is the loss on excess freight to be recognized in 2023? How much is the inventory to be…

A: On December 31, 2022, the home office of ABC Company sent a shipment of merchandise to its Manila…

Q: The following accounts are extracted from the worksheet of X Company on December 31, 2020 Sales…

A: ending inventory=Beginning inventory+Purchases-Purchase returns-Cost of goods…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.