Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. Based on the preceding information, what would be the correct Expenditures amount for 20X7 if Gotham City used the consumption method of accounting? 8000 17,000 25,000 Can not be determine

Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. Based on the preceding information, what would be the correct Expenditures amount for 20X7 if Gotham City used the consumption method of accounting? 8000 17,000 25,000 Can not be determine

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Tommy City acquired $17300 of supplies inventory on November 1, 2019, having held no supplies inventory previously. On December 31, 2019, the end of Tommy City's fiscal year, a physical count shows $6700 worth of supplies inventories still on hand. Based on the preceding information, what amount would be reported as Supplies Inventory at December, 31 2019 if Tommy City used the consumption method of accounting for supplies inventories? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6 Based on the preceding information, which of the following would be the correct account balances for 20X6 if Goshen City used the purchase method of accounting for inventories? Inventory of Supplies $ 2,000 $ 7,000 $ 2,000 $ 2,000 A. B. C. D. Expenditures $0 $0 $5,000 $ 7,000 Multiple Choice O Option A Option B Option C
Harvey Inc. is a calendar corporation. Its financial statements for the years 2021 and 2022 contained errors as follows: Year 2022 Year 2021 Inventory at year end 10,000 understated 30,000 overstated Depreciation expense 8,000 understated 25,000 overstated QUESTION: Assume that the proper correcting entries were made at December 31, 2021. By how much will 2022 income before income taxes be overstated or understated? ["", "", "", ""] Assume that no correcting entries were made at December 31, 2021. Ignoring income taxes, by how much will retained earnings at December 31, 2022 be overstated or understated? ["", "", "", ""] Assume that no correcting entries were made at December 31, 2021 or December 31, 2022, and that no additional errors occurred in 2023. Ignoring income taxes, by how much will working capital at December 31, 2023 be overstated or understated?
12. Ebasan was organized on January 1, 2020. On December 31, 2021, the corporation lost most of its inventory in a warehouse fire just before the year end count of inventory was to take place. Data from the records disclosed the following: Goods available for sale 2020 P4,157,000 4,180,000 100,000 2019 P4,069,400 3,940,000 80,000 21% Sales Sales returns and allowances Gross Profit Rate On January 1, 2021 Ebasan's pricing policy was changed so that the gross profit rate would be three percentage points higher than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at 120,000 while damaged merchandise was marked to sell at 80,000 had an estimated realizable value of 18,000. How much is the inventory loss due to fire?
12. Ebasan was organized on January 1, 2020. On December 31, 2021, the corporation lost most of its inventory in a warehouse fire just before the year end count of Inventory was to take place. Data from the records disclosed the following: 2019 P4,069,400 Goods available for sale 2020 P4,157,000 4,180,000 100,000 Sales Sales returns and allowances 3,940,000 80,000 21% Gross Profit Rate On January 1, 2021 Ebasan's pricing policy was changed so that the gross profit rate would be three percentage points higher than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at 120,000 while damaged merchandise was marked to sell at 80,000 had an estimated realizable value of 18,000. How much is the inventory loss due to firet A. 918,200 B. 947,000 C. 856,200 D. 824,600
Vaughn Inc. reported total assets of $6407000 and net income of $505000 for the current year. Vaughn determined that inventory was understated by $140000 at the beginning of the year and $60800 at the end of the year. Ignoring income taxes, what is the corrected amount for total assets and net income for the year? $6407000 and $505000. $6467800 and $425800. $6467800 and $565800. $6346200 and $584200.
1. Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 20X2. During the year 20X2, the corporation purchased additional inventory of $375,000. If cost of goods sold for 20X2 is $470,000, what was the beginning inventory at January 1, 20X2? a.$255,000 b.$245,000 c.$55,000 d.$310,000 e.None of these choices are correct. 2. Martin has a home office for his business as an agent for rock-and-roll bands. The business shows a loss of $2,000 before home office expenses. How should the home office expenses be treated? a. Because of the business loss, home office expenses (other than mortgage interest and property taxes allocated to the office) cannot be deducted in the current year but can be carried forward to the next year. b. Because of the business loss, home office expenses cannot be deducted and are lost forever. c. The home office expenses increase the business loss in the year they are incurred and are 50 percent deductible in that…
1. Lams Company's accounting records indicated the following information: Inventory, January 1 P1,000,000; Purchases 5,000,000; Sales 6,400,000.A physical inventory taken on December 31, 2020, revealed actual ending inventory at cost was P1,150,000. Lams' gross profit on sales has regularly been about 25 percent in recent years. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2020? a. P350,000 b. P200,000 c. P450,000 d. P50,000 2. The following information is available for Tyron Corp. for its most recent year: Net Sales P3,600,000; Freight-in P90,000; Ending Inventory P240,000. The gross margin is 40 percent of net sales. What is the cost of goods available for sale? a. P2,400,000 b. P2,440,000 c. P1,680,000 d. P1,920,000 3. On October 1, Dennis Company purchased P200,000 face value 12% bonds for 98 plus accrued interest and brokerage fees and…
1. SAN JUAN becomes subject to VAT for the first time. The following data are available for SAN JUAN forthe first quarter of 2018: Beginning inventory purchased from VAT registered P 20,160 at cost (VAT inc) Beginning inventory purchased from NON VAT P 120,000 at costSales, vat inc is P 212,800Purchases of packaging materials from a VAT registered is P 80,000 (net of tax)Purchases of materials for manufacturing cooking oil, net of tax is P 30,000The water bill, net of tax is P 10,000The electricity bill, net of tax is P 20,000Salaries of employees, gross of tax are P 50,000 What is the VAT payable (excess vat input)?
Dr. Drake Ramoray is a calendar-year corporation whose financial statements for 2020 and 2021 included errors as follows: Year Ending Inventory Sales Revenue 2020 $40,000 understated $25,000 understated 2021 24,000 understated 37,000 understated Assume that purchases were recorded correctly and that have been no correcting entries made to either 2020, or 2021. It is now January 1, 2022, and suppose the books are closed for 2020, but not 2021. Ignoring income taxes, by how much should Drake directly adjust retained earnings in their correcting journal entry? O $15,000 decrease O $38,000 decrease $15,000 increase O $65,000 increase O $86,000 increase O $126,000 decrease O None of the given answers O $38,000 increase O $126,000 increase O $9,000 increase
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.∙ $0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report isa. $235,000b. $250,000c. $255,000d. $270,000