Zest Company noted the following information regarding its returnable containers for fiscal year 2022: Balance of Deposits for Returnable Containers, 01/01/22 - P250,000 Deposits received for containers of products sold during the year - P800,000 Deposits refunded during the year upon return of containers - P720,000 Deposits forfeited for containers not returned within the prescribed period - P60,000 Cost of containers not returned within the prescribed period - P55,000 Accumulated depreciation on containers not returned within the prescribed period - P15,000 How much is the “Gain on Sale of Returnable Containers” to be recognized by Zest in its Statement of Comprehensive Income for fiscal year 2022?

Zest Company noted the following information regarding its returnable containers for fiscal year 2022: Balance of Deposits for Returnable Containers, 01/01/22 - P250,000 Deposits received for containers of products sold during the year - P800,000 Deposits refunded during the year upon return of containers - P720,000 Deposits forfeited for containers not returned within the prescribed period - P60,000 Cost of containers not returned within the prescribed period - P55,000 Accumulated depreciation on containers not returned within the prescribed period - P15,000 How much is the “Gain on Sale of Returnable Containers” to be recognized by Zest in its Statement of Comprehensive Income for fiscal year 2022?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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Zest Company noted the following information regarding its returnable containers for fiscal year 2022: Balance of Deposits for Returnable Containers, 01/01/22 - P250,000 Deposits received for containers of products sold during the year - P800,000 Deposits refunded during the year upon return of containers - P720,000 Deposits forfeited for containers not returned within the prescribed period - P60,000 Cost of containers not returned within the prescribed period - P55,000 Accumulated depreciation on containers not returned within the prescribed period - P15,000 How much is the “Gain on Sale of Returnable Containers” to be recognized by Zest in its Statement of Comprehensive Income for fiscal year 2022? a. P0 b. P20,000 c. P80,000 d. P140,000
Pacers Company sells its products in expensive reusable containers. The customer is charged a deposit for each container delivered and received a refund for each container returned within two years after the year of delivery. Pacers Company accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2023 is as follows: Containers held by customers at December 31, 2023 from deliveries in: 2021 – P310, 000; 2022 – P500, 000; 2023 – P850,000 Deposits distributed for containers returned from deliveries in 2021 – P280,000; 2022 – P390, 000; 2023 - P590, 000 How much is the ending balance of deposits on December 31, 2023? 2. Pistons company sells portable DVD players for P28,000 each and offers to each customer a 3-year service contract for an additional P3,000. During 2023, the company sold 800 DVD players and 500 service contracts for cash. Expenses related to the service contracts for 2023 amounted to…
On the December 31, 2020 statement of financial position of Babe Co., the current receivables consisted of the following: Trade accounts receivable- P75,000 Allowance for uncollectible accounts- P2,000 Claim against shipper for goods lost in transit (November 2020)- P3,000 Selling price of unsold goods sent by Babe on consignment at 130% of cost (not included in Babe ‘s ending inventory)- P26,000 Security deposit on lease of warehouse used for storing some inventories- P30,000 At December 31, 2020, the correct total of Babe’s current net receivables was A. P132,000 B. P106,000 C. P102,000 D. P76,000
Clark's Chemical Company received customer deposits on returnable containers in the amount of OMR 17,000 during 2019. Deposits are forfeited if containers are not returned within 12 months. Containers at January 1, 2019, represent deposit of OMR 4,000. In 2019, OMR 15,000 was refunded and deposits forfeited were OMR 2,000. The liability for refundable deposits to be reported on the December 31, 2019 would be: Select one: A. 4,000 B. 2,000 C. 9,000 D. 11,000
Omega Company sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Omega accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2020 is as follows: A. Containers held by customers at December 31, 2019 from deliveries in: 2018, P85,000; and 2019, P240,000. B. Containers delivered in 2020: P430,000. C. Containers returned in 2020 from deliveries in: 2018, P57,500; 2019, P140,000; and 2020, P157,000. 1. What is the total amount of Omega Company’s liability for returnable containers at December 31, 2020? 2. How much revenue from container sales should be recognized for 2020?
Yellow Company reported accounts payable on December 31, 2017 at P900,000 before any necessary year-end adjusments relating to the following: * Goods were in transit from a vendor on December 31, 2009. The invoice cost was P50,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 4, 2020. *Goods shipped FOB shipping point on December 20, 2019 from a vendor were lost in transit. The invoice cost was P25,000. On January 5, 2020, the entity filed a P25,000 claim against the common carrier. *Goods shipped FOB destination on December 21, 2019 from a vendor were received on January 6, 2020. The invoice cost was P15,000. What amount should Yellow Company should report as accounts payable on December 31, 2019? 940,000 980,000 975,000 950,000 925,000
Kikiam Company sells its products in reusable expensive containers. The customer is charged a deposit for each container delivered and receives a refund for the reach container returned within two years after the year of delivery. Kikiam Company accounts for any containers not returned within the time limit as being retired by sale at the deposit amount. Information relating to customer deposits follows: Containers held by customers on December 31, 2020, from deliveries in • 2019- P10,000 • 2020- P90,000 Containers delivered in 2021- P100,000 Containers returned in 2021 from deliveries in • 2019- P8,000 • 2020- P40,000 • 2021- P44,000 What amount should Kikiam report as a liability for deposits on returnable containers on December 31, 2021?
The balance in ABC Company's accounts payable account at December 31, 2021, was P900,000, before any necessary year-end adjustment relating to the following: a. Goods in transit from a vendor to ABC on December 31, 2021. The invoice cost was P50,000, and the goods were shipped FOB shipping point on December 29, 2021. The goods were received on January 4, 2022. b. Goods shipped FOB shipping point on December 20, 2021, from a vendor to ABC was lost in transit. The invoice cost was P25,000. On January 5, 2022, ABC filed a P25,000 claim against the common carrier. C. On December 31, 2021, ABC has a P20,000 debit balance in accounts payable to a supplier resulting from an advance payment for goods to be manufactured. What amount should be reported as accounts payable on its December 31, 2021 financial statement?
Orange Company's accounts payable balance at December 31, 2021 was P540,000 before the year-end adjustments relating to the following information: a. Goods with an invoice cost of P30,000 were in transit from the vendor to Orange on December 31, 2021. The goods were shipped FOB shipping point on December 29, 2021 and were received on January 3, 2022. b. Goods with an invoice cost of P15,000, which were shipped FOB shipping point on December 22, 2021 from a vendor to Orange, were lost in transit. On January 4, 2022, Orange filed a P15,000 claim against the transportation. c. Goods with an invoice cost of P9,000, which were shipped FOB shipping point, were in transit on December 31, 2021 from a vendor to Orange. The goods were received on January 5, 2022. What amount should Orange Company report as accounts payable on its statement of financial position as of December 31, 2021?
Belarmino COMPANY sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Belarmino accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2019 is as follows: Containers held by customers at December 31, 2018, from deliveries in: 2017 85,000 2018 240,000 325,000 Containers delivered in 2019 430,000 Containers returned in 2019 from deliveries in: 2017 57,500 2018 140,000 2019. 157,000 354,500 How much…
ABC Company’s Accounts Payable on December 31, 2022, totaled P100,000 before any necessary year-end adjustments relating to the following transactions: On December 21, 2022, ABC Company purchased and recorded goods with an invoice price of P300,000, terms 2/15, n/30 from DEF Company. This amount had not been paid as of December 31, 2022. ABC Company is using the net method for all purchases. Goods shipped FOB Destination on December 23, 2022 from a vendor were lost in transit. The invoice cost of P3,500 was not recorded as of December 31, 2022. Goods shipped FOB Shipping Point on December 26, 2022 from a vendor were still in transit as of December 31, 2022. The invoice cost of P15,000 was recorded on December 31, 2022. Goods purchased and recorded goods with an invoice price of P5,000 from GHI Company on December 28, 2022, terms 3/15, n/45. ABC Company paid its account in full on January 5, 2023. How much is the total adjusted accounts payable on December 31, 2022?
The balance of Ward Company’s Accounts Payable at December 31, 2019 was P1,300,000 before any year-endadjustments of the following transactions during 2019: Goods were in transit from a vendor to Ward on December 31, 2019. The invoice cost was P45,000 and thegoods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020.  Goods shipped FOB shipping point on December 20, 2019 from a vendor to Ward were lost in transit. The invoicecost was P34,000. On January 4, 2020, Ward filed a P34,000 claim against the common carrier.  On December 27, 2019, Ward wrote and recorded checks totaling P60,000 in payment of an accounts payablewhich were mailed on January 10, 2020. a) Prepare adjusting journal entries on December 31, 2019 showing solutions in good accounting form.b) What amount should Ward report as accounts payable on its December 31, 2019 Statement of FinancialPosition?