The company provided the following inventory data for 20X1: Jan 1 1,000 units @ $4.00 2,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The company provided the following inventory data for 20X1: Jan 1 1,000 units @ $4.00 2,000 units @ $4.50 1,000 units @$4.80 3,000 units 1,000 units @$5.00 Beginning inventory Cash Purchase May 18 Oct 5 Credit Purchase Nov 24 Credit Sales Dec 1 Credit Purchase The company's reporting date is December 31. Required: (1) Assume that the company uses perpetual inventory system and weighted average method, prepare journal entries on Oct 5 and Nov 24 (Please do not prepare entries to recognize sales revenue). (2) Assume that the company uses periodic inventory system and weighted average method, prepare journal entries on Dec 1 and Dec 31. (3) Assume that the company uses periodic inventory system and FIFO, prepare journal entries on May 18 and Dec 31. (4) In 20X2, the company found an overstatement of $2,000 for 20X1's ending inventory. The income tax rate is 30%. Prepare journal entries to correct this error. The company provided the following inventory data for 20X1: Jan 1 1,000 units @ $4.00 2,000 units @ $4.50 1,000 units @$4.80 3,000 units 1,000 units @$5.00 Beginning inventory Cash Purchase May 18 Oct 5 Credit Purchase Nov 24 Credit Sales Dec 1 Credit Purchase The company's reporting date is December 31. Required: (1) Assume that the company uses perpetual inventory system and weighted average method, prepare journal entries on Oct 5 and Nov 24 (Please do not prepare entries to recognize sales revenue). (2) Assume that the company uses periodic inventory system and weighted average method, prepare journal entries on Dec 1 and Dec 31. (3) Assume that the company uses periodic inventory system and FIFO, prepare journal entries on May 18 and Dec 31. (4) In 20X2, the company found an overstatement of $2,000 for 20X1's ending inventory. The income tax rate is 30%. Prepare journal entries to correct this error.
Expert Answer:
Answer rating: 100% (QA)
Question Part 1 Oct 5 2011 Inventory account Dr 4800 To Accounts Payable 4800 Credit purchase of 1000 units 48 per Unit Nov 24 2011 Cost of Goods Sold Dr 13500 To Inventory account 13500 Sales of 3000 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
White Corporation has entered into an agreement to transfer accounts receivable to Murphy Company. Under the terms of this agreement, White receives 80% of the value of all the transferred accounts...
-
Buzz and Woody us a perpetual inventory system and weighted average cost method for calculating ending inventory and cost of goods sold but Jesse, the owner is wondering if maybe she should switch to...
-
The company provided the following information. (a) Cash sales for the year were $50,000. (b) Sales on account totaled $60,000. (c) Cost of goods sold was $55,000. (d) Depreciation on equipment was...
-
Suppose you are the manager of an investment fund. The fund is invested in following three assets with the following investments and betas: Stock Shares C Price per share 50,000 $50 MCD 10,000 $200...
-
The pension note disclosure for Deutsche Lufthansa AG for the year ended December 31, 2008, is provided in the chapter. Instructions Using the information from this disclosure, answer the following...
-
Measuring Speed by Radar a baseball coach uses a radar device to measure the speed of an approaching pitched baseball. This device sends out electromagnetic waves with frequency to and then measures...
-
Compute the expected frequencies. Exercises 1015 refer to the following data: Anthropologists can estimate the birthrate of an ancient society by studying the age distribution of skeletons found in...
-
Go to the books companion website, and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) What are the primary lines of business of...
-
Age: 25 Filing status: Single Education: Bachelor's degree obtained 3 years ago Job: Senior Analyst for New York Financial Corporation Salary: $75,000 per year (before taxes and deductions);...
-
Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the...
-
The Australian economy is stagnating, and economic indicators are pointing towards recession. As the Economic advisor to Credit Experience Pty Ltd you are required to brief other associates of the...
-
In 2018, Anna borrowed $5,000. In 2023, the debt was forgiven. Anna does not believe she should report the forgiveness of debt as income because she received nothing at the time the debt was forgiven...
-
The XYZ Company is considering two alternative methods of producing washing powder. Under the method A the fixed cost would be $40,000 and the variable cost per unit $6.60, while under the method B...
-
1. An electric utility company is considering the purchase of a hillside ranch to site a future wind farm. The owner of the 500-acre ranch will sell for $3K per acre if the company will pay her in...
-
ABC Company was founded in 20X1 and had the following taxable income through 20X6: Year Taxable Income 20X1 $290,000 20X2 $180,000 20X3 $80,000 20X4 -$580,000 20X5 $440,000 20X6 $620,000 Apply the...
-
If F = 16 N and m = 3.0 kg. what is the magnitude of the acceleration (a) for the block shown below? The surface is frictionless
-
Provide a minimum of five bullet points highlighting some values and ethics that are relevant to a career in property casualty insurance. They can include things like how you will manage people, a...
-
An environmentalist wants to determine if the median amount of potassium (mg/L) in rainwater in Lincoln County, Nebraska, is different from that in the rainwater in Clarendon County, South Carolina....
-
The company recorded the following summary journal entries during July. a. Cash ............................................. 30,000 Sales .............................................................
-
The company reported the following information for the year: Ending work-in-process inventory . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Depreciation on...
-
Locate the 2011 financial statements for The Walt Disney Company on the Internet. 1. Compute a current ratio for Disney as of October 1, 2011. How does this current ratio compare with the prior...
-
Assume that Boardmaster sold skateboards to a department store for \($35,000\) cash. How would this transaction affect Boardmasters accounting equation? a. Increase both assets and stockholders...
-
Generally Accepted Accounting Principles (GAAP) are created by the a. Securities and Exchange Commission (SEC). b. Financial Accounting Standards Board (FASB). C. Institute of Management Accountants...
-
Boardmaster is famous for custom skateboards. At the end of a recent year, Boardmasters total assets added up to \($622\) million, and stockholders equity was \($487\) million. How much did...
Study smarter with the SolutionInn App