You are at a company picnic and the company president starts a conversation with you. The president says “Since we use the perpetual inventory system, there is no reason to take a physical count of our inventory.” What is your response to the president’s remarks?
Q: Glen Tay Inc. had issued 24,000 shares of its no-par common shares on April 1, 2017 for property…
A: Journal entry is a process of recording business transactions into books of accounts initially. This…
Q: 12. Select the statement that is incorrect concerning the appropriations of retained earnings. a.…
A: Retained earnings is the amount of earnings that is accumulated over the period of time. This is an…
Q: The following income received by officials and employees in the public sector are not subject to…
A: In this question, we are required to determine the income received by the Government officials which…
Q: AA, a domestic corporation, invested Pl.000.000 in 10,000 common shares of stock of BB, another…
A: Taxable income is that income, in which a person pay tax. In this a person earns total money in a…
Q: SME A is a defendant in a breach of patent lawsuit. If the court rules in favor of the claimant, the…
A: Damages: P2,000,000 with 60 percent chance that the entity will be required to pay this amount…
Q: 9 Consider each of the following independent transactions. How will each of these transactions…
A: ROE = Income/Equity Current Ratio = Current Assets/Current Liabilities Debt/Equity = Debt/Equity…
Q: Presented below are the components in Jane Company's income statement. Determine the missing…
A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…
Q: Teal Mountain Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that…
A: Computation of Present Value of Residual Value: Guaranteed Residual Value 4000 PV of $1 @6% for…
Q: Privett Company Accounts payable Accounts receivable Accrued liabilities Cash Intangible $30,000…
A: Introduction: Assets: Any resource having monetary value called as Assets. Assets are of two types:…
Q: Petrillo Company produces engine parts for large motors. The company uses a standard cost system for…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: An audit trail is a step-by-step record by which accounting data can be traced to its source.…
A: Vouching refers to checking the business transactions with their respective source documents.
Q: It means income (in the broad sense) excluding income which is by statutory provisions or otherwise…
A: Exempted Income: When it comes to taxation, exempt incomes are incomes that are not taxable under…
Q: ed eamings Tota ng stockhol
A: The dividend can be issued either via Cash or via Stock, However Both ways dividend is paid…
Q: 5. Information on an entity's accounts is shown below: Increase in accounts payable Decrease in…
A: Accrual basis of accounting is that basis under which all incomes and expenses that are earned or…
Q: An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. Under straight…
Q: Waterway Industries is considering the replacement of a piece of equipment with a newer model. The…
A: Depreciation is the reduction in the value of an asset due to normal wear and tear, passage of time,…
Q: 11. Assuming that the issuing company has only one class of share capital transfer from retained…
A: Share split do not changes the overall contributed capital. Only the issued shares number is…
Q: Toiz-4-Boiz [T-4-B] is a manufacturer of electronic game hardware and game software.The company…
A: Date Account Titles and Explanation Debit Credit Mar. 1, 2018 Share Subscriptions Receivable…
Q: Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company…
A: The sales value at split-off is a technique for allocating joint costs to joint goods depending on…
Q: Based on the following data, what is the current ratio, rounded to one decimal point? Accounts…
A: The current ratio is calculated as current assets divided by current liabilities.
Q: A company uses the percent of sales method to estimate bad debts expense. A company expects for 5%…
A: Lets understand the basics. In percentage of sales method, estimation is made for the bad debt in…
Q: Should not be recognized as income Should be recognized as income immediately Should be recognized…
A: Government Grant are the grant that has been provided by the government to the entity producing such…
Q: Provide In-House or Outsource Decision, Services, Qualitative Aspects Tony and Tina Roselli own and…
A: In managerial accounting, outsourcing is the option to buy a product and pay someone else to…
Q: 6. It means all wealth which flows into the taxpayer other than mere return of capital and includes…
A: Capital: Capital is the amount a owner have. Capital increase with profit and decrease with loss and…
Q: Profit-Linked Productivity Measurement In 20x2, Choctaw Company implements a new process affecting…
A: Cost of labor is the cost incurred towards the labor in the form of wages, benefits etc. Cost of…
Q: The following transaction relate to the month of June 2020 and is taken from the books of…
A: Ledger Control Account It is important for the business entity to prepare the ledger control account…
Q: S11-4 Accounting for a note payable On December 31, 2013, Edgmont purchased $10,000 of merchandise…
A: Perpetual inventory system records and updates the inventory movements in real time.
Q: 9. Under Section 22 (B) of the Tax Code, the term "corporation" does not include: Associations…
A: The tax code is the law presiding over the Philippines that guides tax compliance in the country.
Q: Johnson contributes property to a partnership with a $400,000 value and a $300,000 basis for a 10%…
A: Partnership is a formal agreement between two or more than two partners. In this partners…
Q: Required information [The following information applies to the questions displayed below.] O'Brien…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Katayama Company produces a variety of products. One division makes neoprene wetsuits. Thedivision’s…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Determine the Current Assets value? Accounts payable $30,000 Accounts receivable 35,000 Accrued…
A: Total current assets=Accounts receivable+Cash+Inventory+Marketable securities+Prepaid expenses
Q: A restaurant owner who had yet to earn a monthly profit said, “The busier we are, the morewe lose.”…
A: Contribution margin is the difference of total sales and total variable costs.
Q: Which of the following dividend income is tax exempt? Dividend income received from
A: As per BIR, Dividend received by domestic or resident foreign corporation from another domestic…
Q: If a tenant fixes an item in a rental and takes a deduction from the rent to reimburse themselves,…
A: Concept of Income under head house property
Q: Jack is a policeman tasked to arrest a group of drug pushers. The drug pushers see Jack approach and…
A: Justifying Circumstances Justifying Circumstances which was described as the activities of the…
Q: The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20…
A: Ordinary shares- Ordinary shares, also known as common shares, are stocks sold on community barter.…
Q: Tart Restaurant Holdings, Incorporated began the year with a retained earnings balance of $950,000.…
A: Retained earnings is the amount of earnings accumulated over the period of time. Net income will…
Q: Accounting Which of the following statements is true regarding the identification and assessment of…
A: While undertaking audit for a client, auditor shall try to identify the potential areas of risk to…
Q: What is a typical merger premium paid in a merger or acquisition? What effect does this premium have…
A: A merger premium is usually paid over the purchasing corporation's pre-merger price. The premium is…
Q: Inc. (SII) developed standard costs for direct material and direct labour. In 2019, SII estimated…
A: If the actual rate is more than the standard rate than the rate variance is unfavorable , if however…
Q: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (g) 100 Revenue…
A: Budgets are made to estimate the incomes and expenses during a particular period. Flexible budget is…
Q: Kylie Co. is a VAT-registered merchandising company. Kylie buys products from a local supplier for…
A: VAT Payable is the amount of Value added tax that is payable to the government by an individual. VAT…
Q: Ex. 6-3. Factory Overhead Variance - Fixed Budget Approach. For the month of March, Department 1 of…
A: Three variance method includes: Spending variance=Actual overhead - budgeted overhead allowed based…
Q: On January 1, 2022, the Spartan Equipment Company began construction of a building to be used as its…
A:
Q: Emma Company revealed the following errors in the financial statements: 500,000 800,000 250.000…
A: Computation of effect of the errors on net income for 2020: Amount 2020 inventory understated…
Q: Crane Company sells automatic can openers under a 75-day warranty for defective merchandise. Based…
A: The warranty Expenses are estimated on the basis of past experience for defective units.
Q: 25. The following data pertains to Department 2 for a product, for the month of March 2021:…
A: Concept of Process Costing
Q: repare an income statement Presented is information related to Jay Co. for the month of January…
A: Income statement reports expense and revenue through which net income is calculated.
Q: Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing…
A: If relevant cost is more than purchase price, Whener should but the parts. If relevant cost is less…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Items Included in Inventory The following are several items that Golosow Companys controller has questioned regarding their inclusion in inventory: a. An invoice has been received for goods ordered. The goods were shipped FOB destination but have not been received. b. Purchases have been ordered and received (shipping terms were FOB destination), but no invoice has arrived. c. Product was shipped to a customer today, FOB destination, and the invoice mailed. d. Purchases are in the receiving department, but they are damaged and will be returned. e. Product is in the shipping department, and the invoice has not been mailed to the customer. Shipping terms are FOB shipping point. f. Golosow has inventory in its possession from Tate Company. The inventory is to be sold by Golosow under a consignment arrangement with Tate. Required: 1. For each of the preceding items, indicate whether Golosow should include them in inventory. Justify your answer. 2. Next Level Describe the basic criterion for including items in inventory.Your client, Daves Sport Shop, sells sports equipment and clothing in three retail outlets in New York City. During 2019, the CFO decided that keeping track of inventory using a combination of QuickBooks and spreadsheets was not an efficient way to manage the stores inventories. So Daves purchased an inventory management system for 9,000 that allowed the entity to keep track of inventory, as well as automate ordering and purchasing, without replacing QuickBooks for its accounting function. The CFO would like to know whether the cost of the inventory management program can be expensed in the year of purchase. Write a letter to the CFO, Cassandra Martin, that addresses the tax treatment of purchased software. Cassandras mailing address is 867 Broadway, New York, NY 10003.A company forgets to record a purchase on credit in the purchases account, but ending inventory is correct. The effect of this mistake in the current year is:
- The company just took a physical count of inventory and found $75 worth of inventory was unaccounted for. It was either stolen or damaged. Which journal would the company use to record the correction of the error in inventory? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalDryden Company is an auto parts supplier. At the end of each month, the employee who maintains all of the inventory records takes a physical inventory of the firm’s stock. When discrepancies occur between the recorded inventory and the physical count, the employee changes the physical count to agree with the records.Required:1. What problems could arise as a result of Dryden Company’s inventory procedures?2. How could the internal control system be strengthened to eliminate the potential problems?The president of your company wants you to count merchandise inventory from the factory in preparation for a visit from stockholders. The president asks you to make the inventory a bit heavy by counting one row twice to cause the net income to show a higher number. What should you do?
- You have been asked by the financial vice president to develop a short presentation on the LCNRV method for inventory purposes. The financial VP needs to explain this method to the president because it appears that a portion of the company’s inventory has declined in value. Instructions The financial vice president asks you to answer the following questions. a. What is the purpose of the LCNRV method? b. What is meant by “net realizable value”? c. Do you apply the LCNRV method to each individual item, to a category, or to the total of the inventory? Explain. d. What are the potential disadvantages of the LCNRV method?A retail business like Best Buy experiences some loss of inventory due to shoplifting, employee theft, or errors. The difference between the physical inventory count at the end of the accounting period and the balance of Merchandise Inventory in the accounting records is called ___________. Group of answer choices inventory reduction. inventory theft. inventory loss. inventory shrinkage or inventory shortage.A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? Group of answer choices 1.The person in accounts payable should generate the purchase order. 2.The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. 3.No changes would be made since the person paying the bills is different from the person ordering the inventory. 4.The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people.
- Suppose you are being interviewed for a bookkeeping job for a retailer that uses a perpetual inventory system. The employer feels that the only way to determine whether or not the person being interviewed actually understands how to record transactions, is to ask them to provide an example showing the accounts (no amounts necessary) that would be debited and credited for the following: Purchase merchandise inventory on account. Sale of goods on account Return of part of the merchandise purchased in 1. above to the supplier. Payment to supplier, taking advantage of the discount that was offered. Return of goods by customer for credit. Payment received from customer, taking advantage of discount that was offered.Which of the following documents is not often used for inventory control? Vendor's invoice Sales receipt Receiving report Purchase order With a perpetual inventory system, when should a physical count of inventory be taken? Near year-end Mid-year Never; a physical count is not needed with a perpetual inventory system WeeklyJeanette Corporation's president is in a dilemma regarding which inventory method (LIFO or FIFO) to use. The controller provides the following list of factors that should be considered before making a choice. a. Jeanette has borrowed money during the current month and has entered into a debt contract. The covenants of this contract require Jeanette to achieve a certain amount of net income and mintain a certain amount of working capital. b. The Jeanette's board of directors is contemplating a proposal to reward the top corporate management with an incentive bonus based on accounting net income. c. The vice president of finance suggests using the LIFO method for tax purposes and the FIFO method for financial reporting purposes. With lower taxable income, Jeanette can save on the current tax it pays, and, at the same time, it can show higher income in the financial reports and "look good." d. The controller cautions that while the LIFO method could reduce the current period tax…