Bedrock Company reported a December 31 ending inventory balance of $416,500. The following additionalinformation is also available: The ending inventory balance of $416,500 included $72,900 of consigned inventoryfor which Bedrock was the consignor. The ending inventory balance of $416,500 incorrectly included $23,800 ofoffice supplies that were stored in the warehouse and were to be used by the company's supervisors andmanagers during the coming year. Based on this information, the correct balance for ending inventory onDecember 31 is: Multiple Choice $416,500 $343,700 $309,000 $392,700 $319,900

It is important to understand the items that should be included in inventory at the end of an…

Answered: Bedrock Company reported a December 31…

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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On December 1, 20x1, the warehouse of A Company and all inventories contained therein were damaged by flood. Off-site back up of data base shows the following data:Beginning inventory - 18,850.00Payable, beginning - 7,500.00Payable, November 30 - 1,980.00Payments to supplier - 51,450.00Transportation in - 4,760.00Purchase returns - 1,570.00Sales up to November 30 - 75,200.00Sales returns - 5,300.00Sales discounts - 3,300.00GPR based on sales - 25%Additional information: Goods in transit as of November 30, 20x1 amounted to P5,000 and materials damaged by flood can be sold at a salvage value of P2,580. Inventory loss is
Wildhorse Company commenced operations on July 1. Wildhorse Company uses a periodic inventory system. During July, Wildhorse Company was involved in the following transactions and events: July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point. 3 Returned $1,200 of merchandise to Suppliers inc. as it was damaged. Received a credit on account from Suppliers 4 Paid $590 of freight costs on July 2 shipment. 8 Sold merchandise for $3,000 cash. 11 Paid Suppliers Inc. the full amount owing 15 25 2 NG Sold merchandise for $6,400 on account, 1/10, n/30, FOB shipping point. Received full payment for the merchandise sold on July 25. 31 Wildhorse did a physical count and determined there was $10.100 of inventory on hand. Record the transactions in Wildhorse Company's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and…
Wildhorse Company took a physical inventory on December 31 and determined that goods costing $676,000 were on hand. Not included in the physical count were $9,000 of goods purchased from Sandhill Corporation, f.o.b. shipping point, and $29,000 of goods sold to Ro-Ro Company for $37,000, f.o.b. destination. Both the Sandhill purchase and the Ro-Ro sale were in transit at year-end. What amount should Wildhorse report as its December 31 inventory? December 31 Inventory $ %24
Brockton Ltd. began applying IFRS in 20X8. One of the necessary adjustments was to adjust past inventory records to remove warehousing expenses from the balances of the ending inventories for 20X5, 20X6, and 2OX7, and restate earnings. The pre- adjustment inventory balances and the warehousing costs contained therein were as follows: Balance, 31 December $800, 000 Year Warehousing Costs $30, 000 18, 000 25, 000 20X7 20X6 680, 000 720, 000 20X5 Required: 1. Show the impact this change will have on the company's earnings. Assume an income tax rate of 30%. Earnings Increase (Decrease) 20X5 20X6 20X7 Warehousing costs: Reported in opening inventory Reported in ending inventory Net change in pre-tax earnings Income tax Adjustment to net earnings 2. Prepare the adjusting entry (entries) that Brockton will need to make on its books in 20X8 to reflect the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View…
During the taking of its physical inventory on December 31, 20Y3, Zula Company incorrectly counted its inventory as $116,985 instead of the correct amount of $131,025. Indicate the effect of the misstatement on Zula's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value. Line Item Description Financial Statement Understated or Overstated Amount Current assets $fill in the blank 3 Gross profit $fill in the blank 6 Inventory $fill in the blank 9 Net income $fill in the blank 12 Stockholders' equity $fill in the blank 15 Total assets $fill in the blank 18
Exercise 2-25 3 Adjusting and Closing Entries and Post-Closing Trial Balance Below is the trial balance for Boudreaux Company as of December 31. Cash Accounts Receivable. Inventory Prepaid Expenses . Land Plant and Equipment.. Other Assets Accounts Payable. Wages, Interest, and Taxes Payable Unearned Revenue.. Long-Term Debt Other Liabilities Common Stock Retained Earnings.. Dividends. Sales.. Interest Revenue. Cost of Goods Sold.. Selling, General, and Administrative Expenses Interest Expense. Income Tax Expense Totals. Debit $ 72,000 365,000 52,000 36,000 70,000 1,254,000 1,275,000 211,000 1,565,000 615,000 82,000 205,000 $5,802,000 Credit $ 154,000 218,000 42,000 1,190,000 297,000 195,000 915,000 2,762,000 29,000 $5,802,000
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost Beginning inventory, January 1 3,200 $ 45 Transactions during the year: a. Purchase, January 30 4,550 55 b. Sale, March 14 ($100 each) (2,850 ) c. Purchase, May 1 3,250 75 d. Sale, August 31 ($100 each) (3,300 ) Assuming that for the Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1.
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19.Your review of ABC Company's inventory and related records for the year revealed the following information:Inventory, 1/1 - 450,000Purchases -3,150,000Sales -4,200,000You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory.What is the cost of the missing inventory assuming that ABC's gross profit remains at 30% of sales?
(i)The inventory costing $ 150,000 being ordered by customers before the year end was excluded from the ending inventory balance as they are set aside for delivery after year end. The ending balance of inventory as on the statement of financial position was $ 600,000. (ii) Inventory list shows 40 boxes of rice but only 38 boxes were found in the warehouse. (iii) The inventory has a cost of $600,000 and realizable value of $540,000 as the items are outdated. The ending balance of inventory as on the statement of financial position was $ 600,000. Q) For each misstatement above, explain which of the above assertions is violated. (Each assertion can only be used once.) Also, give the relevant audit objective the auditor should focus on when detecting the misstatement if the assertion is "Valuation and Allocation "
Your review of Mine Company's inventory and related records for the year revealed the following information:Inventory, 1/1 - 450,000Purchases -3,150,000Sales -4,200,000You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory.What is the cost of the missing inventory assuming that Mine's gross profit remains at 30% of sales?
Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise should be on hand on December 31, 20Y1. The physical inventory indicates that $1,109,300 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Stanley Flooring Company for the year ended December 31, 20Y1. Assume that the inventory shrinkage is a normal amount.

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