YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after discovering that one of the trusted employees committed theft and ran away with pieces of jewelry. The inventory disclosed goods on hand costing P5,5o0,000. Additional information from the books includes the following: Inventory on hand, February 1- P6,750,000; Purchases made from February 1 to 13 - P7,000,000 and Sales - P10,500,000. Records show that sales are made at 40% above cost. What is the amount of loss from theft?
Q: In small business some activities are outsourced and some resources are acquired externally, that is...
A: THERE ARE EFFORTS OF VARIOUS PEOPLE IN ORDER TO RUN A SUCCESSFUL BUSINESS MANY PEOPLE ASSOCIATED ORG...
Q: Which of the following will force a sole proprietorship to be legally dissolved? * A) Sales exceed $...
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new ...
Q: Several items are omitted from the income statement and cost of goods manufactured statement data fo...
A: Direct materials used= Materials beginning + materials purchased - materials ending Total manufactur...
Q: bike engines rbike engine torbike engin
A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into debi...
Q: A bond with a face value of $6,000 pays quarterly interest of 3.5 percent each period. Twenty-two in...
A:
Q: Sheffield Manufacturing Company collected the following production data for the past month: Units To...
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest ...
Q: Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling Materials hand...
A: Formula: Activity rate for the scheduling activity cost = Scheduling activity cost / Number of produ...
Q: Journal Entries Date Particulars Dr Cr Jan 1 Mr. Bon Hok A/c Cash A/c (Being cash withdraw) P20,000 ...
A: Ledger is second form of accounting record to record transaction in books after Journal. It simplifi...
Q: ACAR Photography Adjusted TRIAL BALANCE Dec., 31, 2018 Debit Accounts |Cash Accounts receivable Supp...
A: Formula: Net income = Total Revenues - Total Expenses
Q: Scenario: Assume that a relatively new company you and you group members are involved with has prese...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: 30,0 g entry is IS
A: The adjusting entry is given as,
Q: Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s ...
A: Inventory should be valued at cost or net realizable value (NRV) whichever is lower on December 31.
Q: 12 Our company currenty makes and sells two products: A and B. The relative number of production and...
A: The Break-even point indicates that total units are to be sold by the business entity to recover its...
Q: hing reported the following: Inventory Purchases from Corgan $170,000 190,000
A: The computation is given as,
Q: The following information is available for Canadian Tire Corporation (in $ millions): 2018 2017 2016...
A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning in...
Q: Yellow Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods pric...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: If I am in the United States military and I was in training for three months and I generated income,...
A: Internal Revenue Service: The Internal Revenue Service is the country's expense assortment office an...
Q: Blue Spruce Architects incorporated as licensed architects on April 1, 2022. During the first month ...
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger mean...
Q: 16.On March 31, 2021, the warehouse of Cucumber Company was destroyed by fire. The company's marku...
A: Opening balance = P600,000 Sales = P2240000 Markup = 40% Cost of sales = 2240000*0.40/(1+0.40) ...
Q: Avocado Company regularly buys merchandise from Ukraine Company and is allowed trade discounts of 15...
A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is...
Q: Wagner
A:
Q: Adjusting journal entry December 31 2021: Dr. Insurance Expense 24000 Cr. Pre-Paid Insur...
A: Opening balance of prepaid insurance = 1500 Purchase of prepaid insurance = 30000 Consumption of pre...
Q: 1. Following information are given for an implementation of Scanlon plan. Sales during last year Sal...
A: Gainsharing bonus is basically a group bonus given to employees for efficiency of their group work. ...
Q: Compute the following: Ignore tax effects. (a) Income from operations $ 60000 (b) Net income 41700 (...
A: Income from operations: It is the income realized from the company's primary operations. Net Income...
Q: If a company issues common stock for $45600 and uses $34200 of the cash to purchase a truck,
A: Asset indicating all the resources owned by a business. It has a future value with an economic value...
Q: Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year-end p...
A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold
Q: Cost to Issue Equity Securities to Effect a Business Combination Search the FASB ASC database to de...
A: Introduction:- A share of capital stock that represents a shareholder's ownership stake in a firm, p...
Q: Lanson Corporation Co's trial balance included the following account balances at December 31, 2021: ...
A: Current Liabilities are those liabilities which are to be paid within 1 year from the Balance Sheet....
Q: During the course of your examination of the financial statements of Trojan Corporation for the year...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: Discuss the Top-to-Bottom and Bottom-to-Top approaches in Cost Estimating. Focus your discussion in ...
A: Meaning: Top-to-Bottom approach: Top-to-Bottom approach is also called imposed style cost estimation...
Q: Evaluate and Integrate the role of quantitative information in making business decisions.
A: Quantitative studies are all about numbers. It makes use of mathematical evaluation and facts to she...
Q: Current Attempt in Progress During January 2022, Concord Corporation paid a cash dividends of $1600....
A: A cash dividend is a payment of cash made to shareholders as proportion of the company's current inc...
Q: Splish Brothers is a trucking company. It provides local, short-haul, and long-haul services. It has...
A: Activity based costing refers to a costing method that involves assignment of costs to the specific ...
Q: Costs per equivalent unit: Costs Total costs for May in Roasting Department Total equivalent units C...
A: It is a process wherein the cost incurred in the service departments is allocated to other service ...
Q: Exercise 12-5 (Algo) Trading securities [LO12-1, 12-3] Tanner-UNF Corporation acquired as an investm...
A: BONDS ARE TYPICALLY ISSUED TO RAISE FUNDS FOR SPECIFIC PROJECTS . IN RETURN , THE BOND ISSUER PROMIS...
Q: Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement...
A: Cash flow statement provided information about the cash inflows and cash outflows of the company. Ca...
Q: Zephyr sales company has sales of 1.125 million. If the company's management expects sales to grow 6...
A: Lets understand the basics. For answering this question we are required to use below formula. = (100...
Q: Alexander owns an art gallery. He accepts paintings and sculpture on consignment and then receives 2...
A: 2. Cost formula: Total cost = Variable cost for the opening shows + Fixed cost = (Number of opening ...
Q: Determine the amounts that Beckman should report in its year-end consolidated financial statements f...
A: Amount Non-controlling interest in subsidiary income $9,640 ...
Q: 1. When would you choose to give a refund after creating a Credit Memo?
A: Answer: As per Q/A guideline, first question has been answered. Please repost remaining question. Cr...
Q: A concrete pavement on a street would cost 10000 and would last for 5 years with a negligible repair...
A: solution given Initial cost 10000 Annual repair cost 1000 Life 5 years Interes...
Q: On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on Jun...
A:
Q: In 2022, Red Corp., a C corporation, donated shares of stock to a qualified charitable organization....
A: Charitable Institute is an institute created for the purpose of charity. Charity can be of any type ...
Q: The following is a December 31, 2021, post-closing trial balance for the Jackson Corporation. Accoun...
A: Balance sheet: It is a financial statement that reflects all the liabilities, equity, and assets of ...
Q: Activity-Based Costing, Traditional Costing 1. The controller for Mitchell Supply Company has establ...
A: Activity based costing is one of the type of costing system, which shows that all indirect costs and...
Q: 3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first...
A: Using FIFO method, goods produced first are to be sold first and using LIFO method, goods produced l...
Q: When the effective interest method is used, the amortization of the bond premium decreases interest ...
A: Lets understand the basics. For amortization of premium and discount, there are two methods which ar...
Q: A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five...
A: Fair value with no growth: December 31, 2021 Fair value with no growth (Same Age) 2 years old = 35 ...
Q: Lychee Company uses the retail method of inventory valuation. The following information is available...
A: Cost of Ending inventory: When it comes to ending inventory, it is the cost of the products that are...
Q: The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB) RM Sales (3,000 uni...
A: Hi, Since the question has multiple sub-parts, we will provide an answer for the first three subpart...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 $ 38,000 Purchases—goods placed in stock July 1–15 85,000 Sales revenue—goods delivered to customers (gross) 116,000 Sales returns—goods returned to stock 4,000 Your client reports that the goods on hand on July 16 cost $30,500, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan’s insurance covers only goods owned. Instructions Compute the claim against the insurance company.Mary Potts arrived at her stored on the morning of January 29, she found empty shelves and display racks; thieves had broken in during the night and stolen the entire inventory. Accounting record showed that Potts had inventory costing $50,000 on January 1. From January 1 to January 29, Potts had made net sales of $70,000 and net purchase of $80,000. The gross profit during the past several years had consistently averaged 42 percent of net sales. Potts plan to file an insurance claim for the theft loss. a. Using gross profit method, estimate the cost of inventory at the time of the theft b. Does Potts use the periodic inventory method or does she account for inventory using the perpetual method? Please could defend your answer.On May 17, it was discovered that a material amount of inventory had been stolen. A physical count discloses that P55,000 of merchandise was on hand as of May 17. The following additional data is available from the accounting records: Inventory, January 1 ...................................................................... P 62,000 Purchases, January 1 - May 17 (includes P4,000 shipped FOB shipping point May 16, received May 19) ...............................114,000 Sales (goods delivered to customers), Jan 1 - May 17........90,000 Records indicate that the company's gross profit has averaged 40 percent of selling prices. Estimate the amount of loss due to theft.
- April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered. - sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account. - A debtor account balance of sh 300 had not been included in the list of balance . - Cash received of sh. 750 had been entered in a personal account as sh. 570. - Discounts allowed totalling sh.100 had not been entered in the control account. - A personal account balance had been undercast by sh.200. - A contra item of sh.400 with the purchase ledger had not been entered in the control account. - A bad debt of…April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered.- sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account.- A debtor account balance of sh 300 had not been included in the list of balance .- Cash received of sh. 750 had been entered in a personal account as sh. 570.- Discounts allowed totalling sh.100 had not been entered in the control account.- A personal account balance had been undercast by sh.200.- A contra item of sh.400 with the purchase ledger had not been entered in the control account.- A bad debt of sh.500 had…The following misstatements are included in the accounting records of Westgate Manufacturing Company. Each month, a fraudulent receiving report is submitted to accounting by an employee in the receiving department. A few days later, he sends Westgate an invoice for the quantity of goods ordered from a small company he owns and operates in the evening. A check is prepared, and the amount is paid when the receiving report and the vendor’s invoice are matched by the accounts payable clerk. Telephone expense (account 2112) was unintentionally charged to repairs and maintenance (account 2121). Required: For each misstatement, identify the transaction-related audit objective that was not met. For each misstatement, state a control that should have prevented it from occurring on a continuing basis. For each misstatement, state a substantive audit procedure that could uncover it.
- An inventory taken the morning after a large theft discloses P60, 000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 P84,000 Purchases received, March 1 – 11 P63,000 Sales (goods delivered to customers) P120,000 Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation. Past records indicate that sales are made at 25% above sales. Answer: Beginning Inventory Add Purchases Goods Available Goods Sold Estimated Ending Inventory Physical Inventory Theft LossOn July 29, 20Y1, Ever Green Company, a garden retailer, purchased $12,000 of seed, terms 2/10, n/30, from Fleck Seed Co. Even though the discount period had expired, Mary Jasper subtracted the discount of $240 when she processed the documents for payment on August 13, 20Y1. Is Mary committing an illegal act? Is Mary behaving in a professional manner? Mary Jasper is not behaving in a Give reasons for your answers. What choices does Fleck Seed Co. have when it processes the receipt of $11,760 for payment of the invoice?Muller Computers stores its inventory in a warehouse that burned to the ground in late November, 2018. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory that was in the warehouse. The following information is available: Beginning Inventory 375,000 Purchases through November 30 470,250 Net sales revenue through november 30 793,000 The company's gross profit has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method. a.$528,550 b.$388,450 c.$369,950 d.$410,000
- The following misstatements are included in the accounting records of Westgate Manufacturing Company.1. Each month, a fraudulent receiving report is submitted to accounting by anemployee in the receiving department. A few days later, he sends Westgate an invoicefor the quantity of goods ordered from a small company he owns and operates inthe evening. A check is prepared, and the amount is paid when the receiving reportand the vendor’s invoice are matched by the accounts payable clerk.2. Telephone expense (account 2112) was unintentionally charged to repairs andmaintenance (account 2121).3. The accounts payable clerk prepares a monthly check to Story Supply Company forthe amount of an invoice owed and submits the unsigned check to the treasurer forpayment along with related supporting documents that have already been approved.When she receives the signed check from the treasurer, she records it as a debit toaccounts payable and deposits the check in a personal bank account for a…Due to theft or error— the business should have on hand inventory costing $184,000. But on December 31, 2019 Steve Austin, the owner of Austin Sound, counts the merchandise in the store, and the total cost of the goods on hand comes to only $ 178,000(actual amount). The entry would include a on December 31, 2019: A) credit to Inventory 6,000 B) debit to Accounts Payable 6,000 C) debit to Sales Revenue 6,000 D) credit to Cost of Goods Sold 6,000On December 31, 2021, a typhoon damaged a warehouse of Iceman Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the Inventory was not Insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data were gathered: Inventory, January 1, P450,000; Purchases, P2,160,000; Cash sales, P273,600; Amount of account receivable collected, P2,520,000; Accounts receivable-January 1; P210,000; Accounts written off, P9,600; Recovery of accounts written-off P3,600; Accounts receivable-December 31, P342,000; Sales returns, P36,000: Sales discounts, P14,400; Purchase returns, P60,000; Purchase discounts, P12,000; Freight in, P21,600; Salvage value of damaged Inventory, P90,000 while an undamaged Inventory that were marked to sell at P150,000 were recovered. Gross profit percentage on sales, 32%. How much is the value of Inventory loss?