The Marchetti Soup company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system): (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 to credit customers for $200,000 (4) collected $180,000 in cash from credit customers, and (5) paid suppliers of inventory $ 145,000, pass journals.
Q: he amount o
A: The leftover amount of profit is paid for all the cost direct costs indirect costs and income taxes…
Q: On January 1, the company purchased equipment that cost $10,000. The equipment is expected to be…
A: Introduction: Depreciation: Decreasing value of Fixed assets over its useful life period called as…
Q: Glendale Company is using process costing system. The following were taken from the books for…
A: 1. Equivalent production for materials = units completed and transferred +( unit in progress x % of…
Q: Based on 20 years of experience, a business deducted the future estimated cost of honouring discount…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: The table shows financial data for Purrfect Pets, Incorporated as of June 30, Year 3. Accounts…
A: Balance sheet is a statement that records the company's assets , liabilities and equity on a…
Q: Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the…
A: Inventory valuation refers to the methods used by the company to determine the value of its…
Q: Two partners agree to share income based on the following-75% to Partner A and 25% to Partner B.…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Direct material costs are recorded: O Indirectly to Goods in Process account. O Indirectly to a…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Z company incorporated on 1st April 2001, took over a running business from 1st january 2001. From…
A: Answer:- Sales definition:- Sales are actions that include selling or the amount of things…
Q: Prepare Financial Statements: a) Income Statement / Profit & Loss Statement b) Statement of changes…
A: Statement of financial position is the statement which is the balance sheet and on which company…
Q: $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi-…
A: PMT = Payment per period i = Interest rate per period n = Number of periods
Q: A company uses a process cost accounting system. The following information is available regarding…
A: Weighted average method distributes cost irrespective of the consumption hence opening WIP is not…
Q: 2. liven : P= P60 V = 4% + 15 find the interest and maturity value
A: Lets understand the basics. For calculating interest and maturity value we need to use below…
Q: 1. Ahmed and Ali are partners in a small business. Their partnership agreement states that net…
A: In the context of the given question, we are required to compute the total allocation of net income…
Q: 01: Q X Google X My Questions | bartleby X + e.esc.edu/mod/lti/view.php?id=3172946 e Library MyESC…
A:
Q: Consider the following scenario: A newly incorporated company ("iX Nuts") engages in the selling of…
A: 1)Journal entries for the year 2022. Sl No Account Titles Debit Credit A Cash a/c Dr…
Q: lated as $100,000 m has a Specific Construction Loan of $300,000 at 5 st per annum. voidable…
A: Avoidable Interest: It is the amount of interest cost on loan during the period, which is…
Q: P2.2B (LO 2) AP Mountain Adventure Travel Tours was started on May 1 by Dustin Tanner. The following…
A: Journal entry: It implies to the recording of financial transactions, entered into by the business,…
Q: Quality-Value, Inc. maintains a gross margin of 75% on all of its merchandise. In September the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The unearned rent account has a balance of $48,053. If $6,544 of the $48,053 is unearned at the end…
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…
Q: QUESTION 4 Which of the following strategies in implementing the Team's Initial Audit is associated…
A: Option 2) Strategy B Is the correct Option
Q: 18 The classified balance sheet for a company reported current assets of $811,925, total…
A: Given in question: The balance sheet of a company reports the following things: Current assets of…
Q: At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the…
A: Manufacturing overhead is the cost incurred on the production of the goods.
Q: Give me answer within 30 min please I will give you positive rating immediat
A: Oriole company owns 4300 of the 10000 shares of Sheffield Corporation. It means Oriole has 43% stake…
Q: wing information is provided for the first month of operations for Legal Services Inc.: A. The…
A: Explanation of Concept Journal entries: Journal entries are the accounting treatment done in the…
Q: For many years, Manama Corporation has used a straightforward absorption costing approach to…
A: Manama Corporation has been following absorption based costing approach. Absorption costing is the…
Q: aughn Manufacturing produces a product that requires 3.40 pounds of materials per unit. The…
A: Material is the inventory purchased by the company in order to produce the product for the company.…
Q: Karim Ahmed, a recent graduate of an accounting program, evaluated the operating performance of…
A: Explanation of Concept Cost is the expenses which have been incurred for production, marketing and…
Q: What total amount should be capitalized as cost of the machine?
A: Original price is the whole charge related to the acquisition of an asset. The authentic price of an…
Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…
A: Every business must be evidenced in at least two places, according to the logic of a journal entry…
Q: Pureform, Incorporated, uses the weighted-average method in its process costing system. It…
A: Process Costing- The process cost system evaluates finished goods inventory by allocating total…
Q: How much is VAT payable for the month of January 2022?
A: This question is related to the VAT so before moving into the question we know the meaning of VAT.…
Q: Policy A Policy B Fire/Theft A company is considering two insurance plans with coverage and premiums…
A: Answer to (1) Suppose : Units of A need to added = X Units of B need to added = Y From the question…
Q: The balance in the supplies account before adjustment at the end of the year is $615. The proper…
A: Given that, Supplies on hand at the end of year = $248 Supplies before adjustment = $615
Q: Cullumber Company is performing a post-audit of a project completed one year ago. The initial…
A: The net present value represents the current price value of an investment of the company.
Q: 1. Depreciation on the company's equipment for the year is computed to be $18,000. 2. The Prepaid…
A: Every business needs to report all incomes, expenses, assets and liabilities accurately. Adjusting…
Q: A new barcode reading device has an installed cost basis of $23,790 and an estimated service life of…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
Q: Bopha Ltd, a general construction company which is based in Limpopo, has a financial year end of 31…
A: All the expense which incurred to bring an asset to put to use will be capitalise as a part of that…
Q: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: No. outsourcing should only be cons capacity. No, the unique requirements and challenges associated…
A: Every business has the aim to earn profit and to earn the profits company must made the product or…
Q: Gently Laser Clinic purchased laser equipment for $6,320 and paid $661 down, with the remainder to…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Yolo Corporation experienced financial difficulty in 2020. It decided to go into note receivable…
A: Journal Entries- Journal entries are the visual representation of business transactions. A general…
Q: Year 1 Dec. 16 Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Sheffield Corp. expects direct materials cost of $5 per unit for 110000 units (a total of $550000 of…
A: Standard material cost is based on the per-unit rate of material and the budgeted material cost is…
Q: What tax remedy is provided by the Tax Code to minimize the impact of indirect double taxation on…
A: Disclaimer: "Since you have asked multiple questions ina single question so we solved first question…
Q: D Question 2 The following costs are included in a recent summary of data for a company: advertising…
A: It is type of costs.In detail we can refer it to an ongoing expense of operating a business.…
Q: Candice Corporation, a domestic corporation sold its 100,000 shares with par value of P 15 per share…
A: Capital gains tax rate for a domestic corporation is 15%. No tax is to be paid if shares are sold to…
Q: Financial statements for Crane Company are given below: Crane Company Balance Sheet January 1,…
A: Investing activities in the cash flows includes the receipts and payment of cash to be received or…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
- On September 30, 2013, the general ledger of Leons Golf Shop, which uses the calendar year as its accounting period, showed the following year-to-date account balances: The merchandise inventory account had a 48,000 balance on January 1, 2013. The historical gross profit percentage is 40%. Leon prepares quarterly financial statements and takes physical inventory once a yearat the end of the accounting period. In order to prepare the financial statements for the third quarter, the store needs to have an estimate of ending inventory. You have been asked to use the gross profit method to estimate the ending inventory. Review the worksheet called GP. Study it carefully because it may have a solution format somewhat different from the one shown in your textbook.The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows. Assume that Markeys Mountain Shop uses the perpetual inventory system. a. Merchandise Inventory at December 31, 140,357. b. Store supplies inventory (on hand) at December 31, 540. c. Depreciation of building, 3,400. d. Depreciation of store equipment, 3,800. e. Salaries accrued at December 31, 1,250. f. Insurance expired during the year, 1,480. 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.Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash, indicating the ending balance. Assume no beginning balances in Accounts Payable and Inventory, and a beginning Cash balance of $36,500. A. purchased merchandise inventory on account, $16,000 B. paid vendors for part of inventory purchased earlier in month, $12,000 C. purchased merchandise inventory for cash, $10,500
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
- Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.