A Thu Jun 20 LT Document (23) Home Insert Draw Layout Review View Calibri Regular (B I U A. 11 7. Each of the following is a feature of internal control, except (2 Points) a. management planning. b. periodic independent verification. C. limited access to assets. d. authorization of transactions. 8. If it takes Gledhill Company 45 days to sell inventory, 23 days to collect from the sale, and creditors' payment terms are 30 days, the financing period is (2 Points) a. 98 days. b. 23 days. C. 45 days. d. 38 days. !!

A Thu Jun 20 LT Document (23) Home Insert Draw Layout Review View Calibri Regular (B I U A. 11 7. Each of the following is a feature of internal control, except (2 Points) a. management planning. b. periodic independent verification. C. limited access to assets. d. authorization of transactions. 8. If it takes Gledhill Company 45 days to sell inventory, 23 days to collect from the sale, and creditors' payment terms are 30 days, the financing period is (2 Points) a. 98 days. b. 23 days. C. 45 days. d. 38 days. !!

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...

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PLEASE ANSWER ASAP Problem No. 6 In conducting your audit of AACA Corporation, a company engaged in import and wholesale business, for the year ended December 31, 2022, you determined that its internal control system was good. Accordingly, you observed the physical inventory at an interim date, November 30, 2022 instead of at December 31, 2022. You obtained the following information from the company’s general ledger. Sales for eleven months ended November 30, 2022 P1,120,000 Sales for the year ended December 31, 2022 1,536,000 Purchases for eleven months ended November 30, 2022 (before audit adjustments) 856,000 Purchases for the year ended December 31, 2022 1,280,000 Inventory, January 1, 2022 140,000 Physical inventory, November 30, 2022 220,000 Your audit disclosed the following additional information. Shipments costing P12,000 were received in November and included in the physical inventory but recorded as December purchases. Deposit of…
Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.
Entity B’s accounts payable on December 31, 20x1 had a balance of P2,300,000 before any possible adjustment for the following: a)Goods in transit purchased on credit for P23,000under an FOB destination term were recorded and included in the inventory count on December 31, 20x1 as “goods in transit” Entity B checks, drawn for P32,000 were found in the safe box during the December 31, 20x1 securities count Goods purchased under an FOB destination, freight collect term were received and recorded at the invoice cost of P60,000 on December 29, 20x1. The cash payment for the related freight of P5,000 wasdebited to the “Freight-out’ account. Goods worth P90,000 received on consignment from Entity D were recorded as an increase in accounts payable. The goods remainunsold as of December 31, 20x1 The balance of accounts payable includes P64,000 cost of goods purchased under an FOB shipping point term that were lost in transitEntity B recorded a corresponding claim against the carrier. How…
37. EX.07.91Logan Company has provided the following information:(1) Included in the physical count were inventory items billed to a customer FOB shipping point on December 31,2019. The goods had a cost of $280 and had been billed at $400. The shipment was on Logan's loading dock waitingto be picked up by the trucking company.(2) Goods returned by customers and held pending inspection in the returned goods area on December 31, 2019,were not included in the physical count. On January 5, 2020, the goods costing $260 were inspected and returned toinventory. Credit memos totaling $380 were issued to the customers on the same date.(3) On January 3, 2020, a monthly freight bill in the amount of $170 was received. The bill specifically related tomerchandise purchased in December 2019, 30% of which was still in inventory at December 31, 2020. The freightcharges had not been recorded at December 31, 2019.(4) Goods were shipped out on consignment on December 15, 2019, and were recorded as a sale…
21.ABC Company has the following data at Dec 31, 20X1:a. Goods sold in transit FOB destination, P100,000b. Goods costing 12,000 has been received, included in the inventory and recorded by purchase, but inspection found that the goods were all defective and would be returned immediately.c. Goods purchased in transit, P34,000, FOB Shipping pointd. Goods in the warehouse, per count P120,000e. Goods in the store at selling price P72,000 (gross profit is 20% of cost)f. Good held on consignment for XYZ Store, P15,000How much is the ending inventory at Dec 31, 20X1? 314,000 328,000 338,000 341,000
ACCT 1510 (W2021) Integrative Case Assignment Due Date: Feb. 9 (7 pm)Hardform Mold Shop Inc. is a company specialized in designing and building molds for theautomotive and aircraft industries. The account balances in the company’s general ledger onJanuary 1, 2020 (first day of the annual fiscal year) were as follows (all account balances are intheir normal position):Cash $ 3,700Accounts receivable 5,900Supplies inventory 29,300Land 168,500Buildings 116,500Accumulated depreciation, buildings 37,500Equipment 58,500Accumulated depreciation, equipment 18,000Accounts payable 25,200Income tax payable 16,600Interest payable 4,200Wages payable (due in 2020) 15,700Notes payable ($10,000 due June 30, 2021, balance due June 30, 2022) 61,500Common shares 151,500Retained earnings, Dec. 31, 2019 52,200Transactions during 2020:a. The company provided mold design services, all on credit, for $210,300. In addition, thecompany manufactured molds for customers for $62,300 cash.b. Accounts receivable of…
THRALL SUAVE Company made the following erron Denumber 31 Pox1 inventory was understated by P100,000 December 31, 20. mventory was overslated by P160.000 Purchases on account in Pox1 wewe understated by P400,000 (not included in physical no Nuvances to suppliers in 202 totalno 1*520 000 were inappropriately charged as purchas Dekabr 201 prepadansurance was overstated by P20,000 December 31, 20x1 unlesumed rent income was overstated by P104 000 December Box interest receivable was understated by 88,000 December 31, 20x2 accrued salaries payable was understated by P120,000 Ndvances from customers in 20x2 totaling 4240,000 were inappropnately recognized as Sales but the goods were delivered in 20x3 Depreciation expense in 20x1 was overstated by 128,800 lo Pox the acquisition cost of a delivery truck amounting to P360,000 was inappropriately charged as expenses . The delivery truck has a useful life of five years. THRALL'S policy is to provide a full years straight line depreciation in the…
PROBLEM 18: San Jose Corporation was organized on January 1, 2020. On December 31, 2021, the corporation lost most of its inventory in a warehouse fire just before the year end count of inventory was to take place. Data records disclosed the following: 2020 2021 Beginning inventory P 0 P 1,020,000 Purchases 4,300,000 3,460,000 Purchase returns and allowances 230,600 323,000 Sales 3,940,00 4,180,000 Sales returns and allowances 80,000 100,000 On January 1, 2021, the corporation’s pricing policy was changed so that the gross profit rate would be 3% points higher than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at P120,000 while damaged merchandise marked to sell at P80,000 had an estimated realizable value of P18,000. 23. How much is the inventory loss due to fire?
PROBLEM 19: San Juan Manufacturing began operations 5 years ago. On August 13, 2021, a fire broke out in the warehouse destroying all inventory and many records relating to the inventory. The information available is presented below (all sales and purchases are on account): 1/1/2021 8/13/2021 Inventory P 143,850 Accounts receivable 130,590 P 128,890 Accounts payable Collections on accounts 88,140 122,850 receivable, 1/1 to 8/13 753,800 Payments to suppliers, 1/1 to 8/13 487,500 Goods out on consignment at 8/13 at cost 52,900 Summary on previous years’ sales follows: 2018 2019 2020 Sales P 626,000P P705,000 P 680,000 Gross profit 187,800 225,600 231,200 24. What is the inventory loss suffered as a result of the fire if the average gross profit rate is used? 25. What is the inventory loss suffered as a result of the fire if the trend in gross profit rate continues?
41.Toto Company’s accounts payable balance at December 31, 2020 was P8,000,000 before considering the following data: ∙ Goods shipped to Toto FOB shipping point on December 15, 2020 were lost in transit. The invoice cost of P500,000 was not recorded by Baggao. On January 15, 2021, Toto filed a P500,000 claim against the common carrier. ∙ On December 30, 2020, a vendor authorized Toto to return for full credit goods shipped and billed at P200,000 on December 15, 2020. The returned goods were shipped by Toto on December 31, 2020. A P200,000 credit memo was received and recorded on January 5, 2021. What should Toto report as accounts payable on December 31, 2020?
28. The following are selected transactions of Thomas, Inc.: 5/10 Sold & shipped on account to Ryder, Inc. merchandise for $29,750, terms 3/10, n/30. 5/16 Ryder, Inc. returned merchandise billed at $6,750 on May 10. 5/19 Received a check from Ryder, Inc. for full settlement of the May 10 transaction. Record the above transactions in general journal form as they would appear on the books of (a) Thomas, Inc. and (b) Ryder, Inc. Ryder, Inc. records purchases at invoice price. Both companies use the periodic inventory system. Omit explanations for the journal entries.
7. Please provide the journal entries tor the tollowing'tacis: Your company uses the "perpetual" method. Your company purchased 500 items of inventory for $145,000 with the terms of 2/EOM, Contimued. Your company returned $30,000 of faulty inventory on 1/28/19. Your company paid for the inventory on 1/31/19. Using the facts from #7 , please do the three journal entries trom Problem #5, but now using the "periodic" method.