. The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the conve method. Transactions during 2019 were as follows: Cost Retail Gross purchases $200,15e $43e,e00 Purchase returns 5,900 4,400 26, eee Purchase discounts 397, see 8,e0e Gross sales Sales returns Employee discounts Freight-in 2, see 28, see 19,e0e 26,e00 Net markups Net markdowns ales to employees are recorded net of discounts.
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- On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
- Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
- Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?Required information [The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retall method for the year ended December 31, 2022. Available Information follows: a. The Inventory at January 1, 2022, had a retall value of $50,000 and a cost of $36,200 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales sales returns Employee discounts Freight-in Net markups Net markdowns Cost $ 333,900 6,400 5,500 29,000 Retail $ 540,000 15,000 500,000 8,000 5,500 30,000 15,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, Inventory was $104,325, the cost-to-retall percentage for 2023 under the LIFO retall method was 70%, and the appropriate price Index was 107% of the January 1, 2023, price level. d. The retall value of the December 31, 2024, Inventory was $53,350, the cost-to-retall percentage for 2024…The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
- The GAP purchased inventories totalling 10392 for the fiscal year ended Feb 2, 2019. I need to use a Financial Statements Effects template to record the cost of goods sold for the Gap's fiscal year ended Feb 2nd, 2019. Accounts I am using is Merchandise inventory 0 2019 - 2131, Feb 2018 1997. And accounts payable Feb 2019-1126 and Feb 2018-1181. I also need to know how to determine how much the company pays to suppliers during the year? Balance Sheet Income Statement Transaction Cash + Noncash Assets = Liabilties + Contributed Capitial + Earned Capitial Revenues - Expenses = Net Income $ 2,131 $ 1,126 Purchase Inventory + $ 10,392.00 + $ 10,392.00 Inventory Accounts Payable Accounts PayableData table Net Sales Revenue Cost of Goods Sold: New Home Income Statement Year Ended December 31, 2019 Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income Drint $ Dono 9,200 78,000 87,200 14,400 $ 162,000 $ 72,800 89,200 56,400 32,800 XYou are assigned to prepare the financial statements of LIVA Company for the year 2021. The following data were made available for you: Ending Inventory at Cost 739,160 Goods Available for Sale at retail 3,930,000 Sales Discount 16,000 48,500 Net markdowns Net markups 30,000 Beginning inventory at retail 1,450,000 2,422,000 Purchases at retail The company adopts the average cost approach to estimate the value of its inventory and the cost ratio is computed at 68%.