Chapter 5, Problem 3.9C

BLOCK D/2018/1 In   t1, you purchase goods on target in the  amount of €  9 thousand (net).  Furthermore, transport costs of  € 500 (net) to be paid  to an external service provider for the purchase of the goods are  incurred (incidental acquisition costs);    payment is also made on destination.  Your col- lege posts the goods receipt as follows: purchase of goods € 9,000 and amounts of € 1,710 intrade payables € 10,710 as well as Other operating expenses for trade payables €500. The goods are to be  sold in t2.  It is foreseeable that you will be able to sell  the goods witha high profit margin. Do the postings of the colleague lead to an accrual determination of success?  If further bookings or corrections are required in t1, make them and justify your action with reference to the possible bookings.  relevant legal regulations!

D Traders purchased a product for R1 450 (excluding VAT). It was resold for R2 100 (excluding VAT) Calculate the mark-up on cost for this product.

Please show the complete solution. Thank you so much. 1. In September 15, 2015, MARK Company signed two non-cancellable purchase commitments. The first requires MARK to purchase inventory of 1,000 units at P950 each (total cost P950,000) by January 15, 2016. The second requires the company to purchase inventory of 1,000 units at P1,200 each (total cost P1,200,000) by March 15, 2016. MARK’s fiscal year end is December 31. The company uses perpetual inventory system. Movements in the price of the inventory are summarized below: December 31, 2015     -   P1,100January 15, 2016         -     900March 15, 2016           -    1,300 Question: What is the amount of net gain (loss) on purchase commitment to be reported in 2015 and 2016 Statement ofcomprehensive income, respectively?

Rizio company purchases a machine for 10,100, terms 1/10, n/60, FOB shipping point

Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:Historical cost : $1,000Replacement cost: $900Estimated Selling price: $ 1,050Estimated costs to complete and sell: $100Required: Write down the journal entry at end of 20181) Follow IFRS2) Follow U.S GAAP

The acquisition of goods with an invoice price of $10,000 is subject to the following terms: 2/10, n/30, FOB destination. The vendor covered all transportation expenses in the amount of $300. What is the merchandise's net cost?

1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was settled on the same day. Global Entity makes use of the perpetual inventory system. Show the effect of each transaction on the Accounting Equation. Use the equation: A= OE + L a. Asset; +40 000 = Equity; nil + Liability; nil.  Asset; -40 000 b. Asset; +40 000 = Equity; nil + Liability; nil.  Asset; +40 000 c. Asset; -40 000 = Equity; -40 000 + Liability; nil d. Asset; +40 000 = Equity; nil + Liability; +40 000 e. Asset; nil = Equity; -40 000 + Liability; +40 000 2.  Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s…

DSWD purchased goods for distribution on account with list price amounting to P100,000. The supplier granted trade discounts of 20% and 10%, with credit terms of 5/10, n/30. Payment was made 15 days after the date of purchase. Compute the cost of purchased goods for distribution

On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer. The entity allowed trade discounts of 15%, and 10%. Credit terms were 3/10, n/30 and the sale was made FOB destination. AAA Company paid 100,000 of the delivery cost. a. Compute the total amount of purchases to be included on the buyer’s inventory in the determination of cost of goods available for sale if payment was made beyond the discount period.   b. What is the full amount received by AAA company if payment was made on June 11, 2023?