For the year ended 31 Dec. 2018 £000 For the year ended 31 Dec. 2019 £000 £00 £000 6,000 Sales revenue Cost of sales Opening inventory Purchases 4,800 1,200 2,700 3,900 (450) 450 4,800 5,250 Less: Closing inventory Gross profit Operating expenses Finance cost Net profit (3,450) 1,350 (600) (150) (900) (4,350) 1,650 (675) (300) 675 600 As at year to 31 Dec. 2018 £000 As at year to 31 Dec. 2019 £000 6,000 Statement of financial position £000 2,955 £000 Non-current assets Current assets Inventory Receivables – trade Prepayments Cash 450 900 90 75 750 1200 105 15 2,070 8,070 1,515 Issued share capital Share premium account Retained earnings 4,470 900 300 1,125 900 300 1,650 2,850 2,325 Non-current liabilities 10% loan notes Current liabilities Payables – trade Accruals 1,500 3,000 570 75 2,100 120 645 4,470 2,220 8,070

For the year ended 31 Dec. 2018 £000 For the year ended 31 Dec. 2019 £000 £00 £000 6,000 Sales revenue Cost of sales Opening inventory Purchases 4,800 1,200 2,700 3,900 (450) 450 4,800 5,250 Less: Closing inventory Gross profit Operating expenses Finance cost Net profit (3,450) 1,350 (600) (150) (900) (4,350) 1,650 (675) (300) 675 600 As at year to 31 Dec. 2018 £000 As at year to 31 Dec. 2019 £000 6,000 Statement of financial position £000 2,955 £000 Non-current assets Current assets Inventory Receivables – trade Prepayments Cash 450 900 90 75 750 1200 105 15 2,070 8,070 1,515 Issued share capital Share premium account Retained earnings 4,470 900 300 1,125 900 300 1,650 2,850 2,325 Non-current liabilities 10% loan notes Current liabilities Payables – trade Accruals 1,500 3,000 570 75 2,100 120 645 4,470 2,220 8,070

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information about inventory stocked for regular sale follows: Item A B C D Quantity on Hand 80 35 40 75 Unit Cost When Acquired €50 €20 €50 €40 Market Value at year end €30 €25 €80 €20 a) Compute the valuation for the December 31, 2022, inventory using the lower-of-cost-or-net realizable value basis and make necessary adjusting journal entries. b) Sold 15 units of A for €20 in cash, 3 units of B for €30 and 10 units of C for €75 cach in cash and written-off 5 units of D. Make necessary journal entries. 7. Improvements were made to the leased warehouse on June 01, 2021 at a cost of $ 22,000. The estimated life of the improvement is ten years. Lease contract terminates on December 31, 2025. Make necessary entries as of 31.12.2021 and 31.12.2022.
solve The Arc 95-9876556 Income Statement For the Year Ended December 31, 2021 Revenue: Gross Sales $144,000.00 Less: Sales Returns and Allowances - Net Sales $144,000.00 Cost of Goods Sold: Beginning Inventory $10,500.00 Add: Purchases 62,200.00 $72,700.00 Less: Ending Inventory 10,100.00 Cost of Goods Sold 62,600.00 Gross Profit (Loss) $81,400.00 Expenses: Dues and Subscriptions - Estimated Federal Tax Payments 4,000.00 Estimated State Tax Payments 3,900.00 Insurance 3,950.00 Meals and Entertainment 1,500.00 Miscellaneous - Payroll Taxes 3,800.00 Professional Fees 1,700.00 Rent 8,400.00 Travel 1,250.00 Utilities 1,300.00 Vehicle Expenses - Wages 25,000.00 Total Expenses 54,800.00 Net Operating Income $26,600.00 How to calculate capital gain step by step answer
1.1 REQUIRED Use the information provided below to prepare an extract of the statement of comprehensive income that includes the value of closing inventory as at 31 December 2022 and gross profit for the year ended December 2022 using the following methods of inventory valuation: 1.1.1 FIFO 1.1.2 Weighted average cost INFORMATION GH Suppliers had an inventory of 10 wallets at R50 each on 01 January 2022, the start of the financial year. During 2022 the following purchases and return were recorded: 75 wallets at R60 each were purchased on 20 February 2022. 25 wallets at R80 each were purchased on 25 August 2022. 10 wallets that were purchased on 25 August 2022 were returned to the supplier. During 2022, 50 wallets were sold at R80 each and 30 wallets were sold at R100 each.
Q3 Computational. From the following information, determine the amount of ending inventory.Beginning Inventory - P20,000Purchases - 41,000Purchase Returns and Allowances - 3,000Purchase Discounts - 4,000Freight-In – 10% of gross purchasesCost of Goods Available for Sale - 55,000Cost of Goods Sold - 22,500
1.1 REQUIRED Use the information provided below to prepare an extract of the statement of comprehensive income that includes the value of closing inventory as at 31 December 2022 and gross profit for the year ended December 2022 using the following methods of inventory valuation: 1.1.1 FIFO 1.1.2 Weighted average cost INFORMATION GH Suppliers had an inventory of 10 wallets at R50 each on 01 January 2022, the start of the financial year. During 2022 the following purchases and return were recorded: 75 wallets at R60 each were purchased on 20 February 2022. 25 wallets at R80 each were purchased on 25 August 2022. 10 wallets that were purchased on 25 August 2022 were returned to the supplier. During 2022, 50 wallets were sold at R80 each and 30 wallets were sold at R100 each. 1.2 REQUIRED Calculate the economic order quantity (EOQ) from the information provided below. INFORMATION The monthly demand for an item sold by Super Stores is 1 000 units. The cost is R6 per unit and the item is…
The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c. P990,000 a. P1,470,000 The cost of ending inventory for Product D is: c. P180,000 b. PP225,000 a. P270,000 d. P540,000 The Gross Profit (Loss) of Product F is: b. P101,250 c. P1,226,250 d. P(483,750) a. P168,750
3. Trump Incorporated reported the following data for the year 2019, 2020 and 2021 2019 2020 2021 Beginning Inventory at Cost Beginning Inventory at NRV Ending Inventory at Cost Ending Inventory at NRV 420,000 ? 560,000 585,000 ? 590,000 ? Purchases 1,500,000 1,680,000 1,620,000 Loss on inventory write-down Cost of sale before inventory write-down Trump uses the allowance method in accounting for inventory write-down. At end of the year 2018, the Allowance for inventory write-down has a balance of 30,000. On 18,000 1,700,000 ? 2021, the cost of sales after considering loss on inventory write-down amounts to 1,590,000. Determine the balance of allowance for inventory write-down after adjusting entries on 2020 a. None of these b. 48,000 c. 12,000 d. 18,000 е. 50,000
6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information about inventory stocked for regular sale follows: Unit Cost When Acquired Item A B C D Quantity on Hand 80 35 40 75 €50 €20 €50 €40 Market Value at year end €30 €25 €80 €20 a) Compute the valuation for the December 31, 2022, inventory using the lower-of-cost-or-net realizable value basis and make necessary adjusting journal entries. b) Sold 15 units of A for €20 in cash, 3 units of B for €30 and 10 units of C for €75 each in cash and written-off 5 units of D. Make necessary journal entries.
Gatekeeper Company has the following information: Inventory - January 1 Cost Net realizable value Net purchases Inventory - December 31 Cost Net realizable value 2023 ? ? 10,000,000 5,000,000 5,200,000 Required: 1. Compute the cost of goods sold during 2022 2. Compute the gain on reversal of inventory write down for 2023 2022 P 3,000,000 2,800,000 8,000,000 4,000,000 3,700,000
Determine the Sales for the year, Gross Profit P240,000.00, Ending Inventory P120,000.00, Goods available for sale P 200,000.00 P 460,000.00 P 320,000.00 P 400,000.00 P 300,000.00
Ivanhoe Corporation's computation of cost of goods sold is: Beginning inventory $64200 Add: Cost of goods purchased 540000 604200 Cost of goods available for sale 93000 Less: Ending inventory $511200 Cost of goods sold The average days to sell inventory for Ivanhoe are (Hint: Round intermediate calculation and final answer to 1 decimal place, eg O.6.) O 45.8 days. O 47.5 days. O 66.4 days. O 562 days.
2 The following figures are for the year 2020: Inventory 1.1.2020 $4000 Inventory 31.12.2020 6000 Purchases 52,000 A uniform rate of markup of 20% is applied. Required: Calculate the gross profit and the sales figures using the income statement approach.