Test I. Answer each of the following cases below: 1. On May 1, the inventory account...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Test I. Answer each of the following cases below: 1. On May 1, the inventory account had a balance of P60,000. During the first few days of May, the following transactions occurred. May 2- Purchased merchandise on credit from Gay Company, P80,000. 31- Sold merchandise on account, P150,000. The cost of the merchandise was P105,000. Required: a. Prepare entries in general journal form to record the above transactions under both systems of accounting for inventories. b. Compute the cost of ending inventory as of May II. On May 1, ABC Company purchased inventory with a list price of P120,000 from MNO company. Terms of the purchase: trade discounts of 10 and 5, 2/10, n/30. Payment was sent to MNO Company on May 11. Prepare the journal entries to record the purchase and subsequent payment assuming both methods. II1. Barlow Company's Accounts Payable balance at December 31, 2006, was P1,800,000 before considering the following transactions: Goods were in transit from a vendor to Barlow on December 31, 2006. The invoice price was P100,000, and the goods were shipped FOB shipping point on December 29, 2006. The goods were received on January 4, 2007. Goods shipped to Barlow FOB shipping point on December 20, 2006, from a vendor were lost in transit. The invoice price was P50,000. On January 5, 2007, Barlow filed a P50,000 claim against the common carrier. In its December 31, 2006, balance sheet, how much should Barlow report as Accounts Payable? IV. You were furnished the following data relative to Product X of Diana Sales Center: Balance: March 1 400 units @ P2 10 12 28 a b. Weighted Average 300 units @ P4 350 units @ P6 50 units @ P8 Units on hand 500 units Required: Compute the cost of ending inventory using the following methods; FIFO Test I. Answer each of the following cases below: 1. On May 1, the inventory account had a balance of P60,000. During the first few days of May, the following transactions occurred. May 2- Purchased merchandise on credit from Gay Company, P80,000. 31- Sold merchandise on account, P150,000. The cost of the merchandise was P105,000. Required: a. Prepare entries in general journal form to record the above transactions under both systems of accounting for inventories. b. Compute the cost of ending inventory as of May II. On May 1, ABC Company purchased inventory with a list price of P120,000 from MNO company. Terms of the purchase: trade discounts of 10 and 5, 2/10, n/30. Payment was sent to MNO Company on May 11. Prepare the journal entries to record the purchase and subsequent payment assuming both methods. II1. Barlow Company's Accounts Payable balance at December 31, 2006, was P1,800,000 before considering the following transactions: Goods were in transit from a vendor to Barlow on December 31, 2006. The invoice price was P100,000, and the goods were shipped FOB shipping point on December 29, 2006. The goods were received on January 4, 2007. Goods shipped to Barlow FOB shipping point on December 20, 2006, from a vendor were lost in transit. The invoice price was P50,000. On January 5, 2007, Barlow filed a P50,000 claim against the common carrier. In its December 31, 2006, balance sheet, how much should Barlow report as Accounts Payable? IV. You were furnished the following data relative to Product X of Diana Sales Center: Balance: March 1 400 units @ P2 10 12 28 a b. Weighted Average 300 units @ P4 350 units @ P6 50 units @ P8 Units on hand 500 units Required: Compute the cost of ending inventory using the following methods; FIFO
Expert Answer:
Answer rating: 100% (QA)
The image shows a text with four parts each presenting different accounting scenarios that require journal entries and calculations related to inventory purchase accounts payable and ending inventory ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Prepare entries in general journal form to record the following: June 4 Received payment from Parker Company of interest on a 45-day, 5.5 percent note for $ 8,700, dated April 20, and renewal of the...
-
Prepare entries in general journal form to record the following: May 5 Received a 2-month, 6 percent note from Paul Dantz for a $ 575 personal loan. July 5 Received the total amount due from Dantz.
-
Prepare entries in general journal form to record the following: June 12 Sold merchandise on account to K. Perrot; terms 3/10, n/30; $ 1,740. July 12 Received $ 740 in cash from K. Perrot and a...
-
Does the performance of kinross gold cooperation affect the performance S&P/TSX Composite index? Explain why or why not using this graph in brief Kinross Gold Corporation (K.TO) Toronto - Toronto...
-
What advantages are lost if the sum of the weights in a weighted scoring approach does not add to 1.0? Why is it suggested that factors with less than 2 percent or 3 percent impact not be considered...
-
Suppose that a researcher is interested in the effect of new smart drug on IQ. Scores from the IQ test are normally distributed with a mean of = 100 and = 15. A participant receives the smart drug...
-
The drag characteristics of a torpedo are to be studied in a water tunnel using a 1:5 scale model. The tunnel operates with fresh water at \(20{ }^{\circ} \mathrm{C}\), whereas the prototype torpedo...
-
McConnell Department Stores' chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average for the industry. The CEO has given you...
-
2. For Roland Company in Industry F, enter the December 31 adjustments in the following table for prepaid insurance, supplies, accrued wages, accrued revenue, and unearned revenue. Then, complete the...
-
Milt Pearson, the president of Supergrip Corporation Limited (SCL), is concerned with the results achieved by SCL for the fiscal year ended May 31, 2010, and has called a meeting of the Executive...
-
Numerous researchers in the area of Law Enforcement have noted the existence of a distinct _______ ________ ________. 1. Acts of Omission 2. Ethics Crime Justice 3. Police Value System 4. Police...
-
State and explain four (4) forms of information technology (IT) risk that universal banks face. c. Discuss measures banks could undertake to mitigate each of the risks stated in (a) above.
-
C owns a perpetuity (valued at $8,235) that pays out annual cash flows. If the rate used to value this cash flow stream (J4 = 6.359%) is expected to remain the same, what is the value of the...
-
Suppose that Xyler Inc.'s beta is estimated to be 0.96. If the expected return on the market is 7% and the risk-free rate is 2%, what is the closest estimate of the discount rate that Xyler should...
-
We want to estimate the value of the CBC Inc. company, as of the end of 2020, and the after-tax cashflow from assets (FCFF) for the year ending 2020 is $86 million. The company's WACC is 12%. What...
-
3) Find the present value of a 20 year annuity due where payments are $1,000 at the beginning of the first year, third year, etc. and payments are $1,500 at the beginning of the second year, fourth...
-
On July 1,2019, ABC Company issued rights to shareholders to subscribe to additional ordinary shares. One right was issued for each share owned. A shareholder could purchase one additional share for...
-
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
-
What amounts are debited to the Work in Process Inventory account during the year? What amounts are credited to this account? What does the year-end balance in this account represent?
-
Coca-Cola's distinctive trademark is more valuable to the company than its bottling plants. But the company's bottling plants are listed in the balance sheet, and the famous trademark isn't. Explain.
-
Percula Farms raises marine fish for sale in the aquarium trade. Each year, Percula obtains a batch of approximately 1 million eggs from a local supplier. Perculas manager is trying to decide whether...
-
With a neat sketch of a room air-conditioner, explain its working principle.
-
Distinguish between a heat engine, a heat pump, and a refrigerator.
-
Discuss about psychrometry and their properties?
Study smarter with the SolutionInn App