In 2017, Sunny Times Corp. makes the following purchases of solar panels, its only product. Assume Sunny Times had noinventory on hand to start the year.DateQuantityUnit Cost ($)Total Cost ($)1/15100757,5003/303009027,0006/147510/1075951007,1257,500On July 1st, Sunny Times makes its only sale of the year of 300 panels at a price of $150 per panel.REQUIRED: If the company uses the LIFO and perpetual method of inventory reporting, what is Sunny Times inventory.balance (in dollars) at December 31, 2017?O $23,375O $28,125$23,625$21,750$21,000O None of the above

Last-in, first-out (LIFO), and perpetual: The last purchased inventory is sold first under the LIFO…

Answered: In 2017, Sunny Times Corp. makes the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 8EA: Record the journal entry for each of the following transactions. Glow Industries purchases 750...

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Hewitt Enterprises is a business that buys and sells printers at a profit and has the following information available for the month of June 2020: There were 100 printers in the warehouse on 1Jun On 10Jun, 50 printers were bought from Printing Traders at R50 per printer. Another purchase of 50 printers were made from the same company for the same price on 20Jun 80 printers were sold during the month. The selling price for one printer is R90. Calculate the gross profit of Hewitt Enterprise for the month of June 2020
The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 210 units. Jan 1, 2021 Beginning Inventory 80 units at $8 Jan 11, 2021 Purchases 65 units at $10 Jan 23, 2021 Purchases 55 units at $ 12 January 31 Purchases 53 units at $14 IF THE TAX RATE IS 30%, HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO?
This problem is centred on the topic “Inventory Valuation & Control" which is covered in Unit 3 & speaks to the following objectives: Course Objectives: 1) Given a set of transactions of a merchandiser for a specified period, prepare an inventory record to determine the value of ending inventory & cost of goods sold 2) Demonstrate how sales returns & purchases returns are treated in the inventory record and how they impact the income statement 3) Prepare an income statement for a merchandising entity 4) Use journal entries to demonstrate the difference between a perpetual & a periodic inventory system using purchases, returns & sale of inventory 5) Given the usage and lead time of inventory items, determine the most economical quantity of that inventory that a business should purchase at any one time. 6) Determine the various inventory levels necessary to prevent overstocking and understocking of inventory
Nathan's Grills, Inc., imports and sells premium-quality gas grills. The company had the following layers in its LIFO inventory at January 1, 2017, at which time the replacement cost of the inventory was $675 per unit. Year LIFO layer added: Units: Unit Cost: 2014 50 $450 2015 40 $500 2016 60 $600 The replacement cost of grills remained constant throughout 2017. Nathan's sold 275 units during 2017. The company established the selling price of each unit by doubling its replacement cost at the time of sale. Required: 1. Determine gross margin and the gross margin percentage for 2017 assuming that Nathan's Grills purchased 280 units during the year. 2. Determine gross margin and the gross margin percentage for 2017 assuming that Nathan's…
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! Required information [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, "/30. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the net method of accounting for cash discounts is used. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash…
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On December 28, 2016, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2017. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
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On November 1, 2015, XYZ Farm entered into a contract to buy a $75,000 harvester from JCP Company. The contract required XYZ Farm to pay $75,000 in advance on November 1, 2015. The harvester (cost of $55,000) was delivered on November 30, 2015. The journal entry for JCP Company to record the delivery of the equipment includes a: Select one: O a. credit to Uneamed Sales Revenue for $75,000, O b. credit to Cost of Goods Sold for $55,000. O C. debit to inventory for $55,000 O d. debit to Unearned Sales Revenue for $75,000,
Crane Company sells goods on credit that cost $320,000 to Paul Company for $404,500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Your answer is correct. Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Date Account Titles and Explanation Jan. 2, 2025 Accounts Receivable Sales Revenue Unearned Service Revenue (To record sales on account) Jan. 2, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts Your answer is incorrect. Debit 404500…
Hw.19. KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter and each quarter KitchenArt purchases 500 mixers. Johnson's whole sale price for each mixer is $35. On November 15, 2014, KitchenArt received an offer from Allison Company who offered $25 for each mixer if KitchenArt purchases 2,000 mixers or more from Allison. KitchenArt still had 1,000 mixer in its inventory on November 15, 2014. Which of the following statement is NOT true? Johnson is KitchenArt's usual supplier. KitchenArt does not need to write down its ending inventory. The $25 price cannot be regarded as the market price for the mixer. KitchenArt should write down its ending inventory according to LOCM

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