Required information [The following information applies to the questions displayed below.] Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Cost per Unit $ 28 Date Transactions Beginning inventory Purchase Purchase Purchase Units Total Cost January 1 April 14 August 22 October 29 $1,036 2,040 3,776 2,822 37 68 30 118 32 83 34 306 $9,674 Jan. 1-Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2021? 2021 (a) Ending inventory (b) Retained earnings (c) Cost of goods sold (d) Net income

Required information [The following information applies to the questions displayed below.] Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Cost per Unit $ 28 Date Transactions Beginning inventory Purchase Purchase Purchase Units Total Cost January 1 April 14 August 22 October 29 $1,036 2,040 3,776 2,822 37 68 30 118 32 83 34 306 $9,674 Jan. 1-Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2021? 2021 (a) Ending inventory (b) Retained earnings (c) Cost of goods sold (d) Net income

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Description: Required information[The following information applies to the questions displayed below.]Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased fromits suppliers and the number sold to cu

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 7MC: Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on...

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Required information [The following information applies to the questions displayed below.] Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Cost per Unit Date Transactions Units Total Cost Beginning inventory Purchase Purchase $ 28 $1,036 January 1 April 14 August 22 October 29 37 68 30 2,040 3,776 118 32 Purchase 83 34 2,822 306 $9,674 Sales ($48 each) 272 Jan. 1-Dec. 31 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries Required: 1. What amount will Sylvester calculate for ending inventory and…
Required information [The following information applies to the questions displayed below.] Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Cost per Date Transactions Units Unit Total Cost Beginning inventory Purchase $1,036 2,040 $ 28 January 1 April 14 37 68 30 August 22 October 29 Purchase 118 32 3,776 Purchase 83 34 2,822 306 $9,674 Jan. 1-Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries 4. Assuming that ending inventory is correctly counted at the end of 2022,…
Required information [The following information applies to the questions displayed below.] Luther has a bird shop that sells canaries. Luther maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 October 29 Transactions Beginning inventory Purchase Purchase Purchase (a) Ending inventory (b) Retained earnings (c) Cost of goods sold (d) Net income Units Unit Cost 27 72 122 87 308 272 2025 $32 34 36 38 January 1 to December 31 Sales ($52 each) Luther uses a periodic inventory system and believes there are 36 birds remaining in ending inventory. However, Luther neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 26 birds in ending inventory. Luther is not aware of the lost canaries. Total Cost $864 2,448 4,392 3,306 $11,010…
Arthur has a bird shop that sells canaries. Arthur maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 October 29 Transactions Beginning inventory Purchase Purchase Purchase Units 44 Ending inventory Cost of goods sold 61 111 76 292 268 Unit Cost $21 23 25 27 Total Cost $924 1,403 2,775 2,052 $7,154 January 1 to December 31 Sales ($41 each) Arthur uses a periodic inventory system and believes there are 32 birds remaining in ending inventory. However, Arthur neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 22 birds in ending inventory. Arthur is not aware of the lost canaries. 2. What amount would Arthur calculate for ending inventory and cost of goods sold using FIFO if he knew that only 22 canaries remain in ending…
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 37 $ 28 $ 1,036 April 14 Purchase 68 30 2,040 August 22 Purchase 118 32 3,776 October 29 Purchase 83 34 2,822 306 $ 9,674 Jan. 1–Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries. 4. Assuming that ending inventory is correctly counted at the end…
Luther has a bird shop that sells canaries. Luther maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2024. Date Transactions Units Unit Cost Total Cost January 1 Beginning inventory 33 $38 $1,254 April 14 Purchase 78 40 3, 120 August 22 Purchase 128 42 5, 376 October 29 Purchase 93 44 4,092 332 $13,842 January 1 to December 31 Sales ($58 each) 278 Luther uses a periodic inventory system and believes there are 54 birds remaining in ending inventory. However, Luther neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 44 birds in ending inventory. Luther is not aware of the lost canaries. 1. What amount will Luther calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes 54 canaries remain in ending inventory?
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 $1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. 4. Assuming that ending inventory is correctly counted at the end of 2022, what effect will the inventory error in 2021 have on…
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 $1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. 2. What amount would Sylvester calculate for ending inventory and cost of goods sold using FIFO if he knew that only 47 canaries…
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 $1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods…
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 $1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. 2. What amount would Sylvester calculate for ending inventory and cost of goods sold using FIFO if he knew that only 47 canaries…
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 35 $40 $ 1,400 April 14 Purchase 80 42 3,360 August 22 Purchase 130 44 5,720 October 29 Purchase 95 46 4,370 340 $14,850 Jan. 1–Dec. 31 Sales ($60 each) 280 Sylvester uses a periodic inventory system and believes there are 60 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 50 birds in ending inventory. Sylvester is not aware of the lost canaries. Required: 1. What amount will Sylvester calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes…
Review the following transactions, and prepare any necessary journal entries for Renovation Goods. A. On May 12, Renovation Goods purchases 750 square feet of flooring (Flooring Inventory) at $3.00 per square foot from a supplier, on credit. Terms of the purchase are 2/10, n/30 from the invoice date of May 12. B. On May 15, Renovation Goods purchases 200 measuring tapes (Tape Inventory) at $5.75 per tape from a supplier, on credit. Terms of the purchase are 4/15, n/60 from the invoice date of May 15. C. On May 22, Renovation Goods pays cash for the amount due to the flooring supplier from the May 12 transaction. D. On June 3, Renovation Goods pays cash for the amount due to the tape supplier from the May 15 transaction.