Jitra Bhd (JB) sells health care product. Following is the information for its inventory for the month of December 2021. Date Transactions I Dec Inventory on hand consists of 500 units at RM14 each. 8 Dec Sold merchandise for RM9,000 (300 units @ RM30), f.o.b. destination, to a customer in Ampang, Kuala Lumpur. The customer was scheduled b receive the merchandise on 9 December 2021. Purchased merchandise costing RM10,500 (700 units @ RMI5) from a vendor, f.o.b. shipping point, 2/10, n/30. The merchandise was received on 14 December 2021. The transportation cost was RM140. 10 Dec Purchased merchandise costing RM6,200 (400 units @ RM15.50) froma vendor, f.o.b. destination, 2/10, n/30. The merchandise was received on 19 December 2021. The transportation cost was RM80. 15 Dec 20 Dec Sold merchandise for RM15,000 (500 units @ RM30), f.o.b. shipping point, to a customer in Sungai Petani, Kedah. The customer was scheduled to receive the merchandise on 22 December 2021. Purchased merchandise costing RM16,000 (1,000 units @ RM16) fom a vendor, f.o.b. destination, 2/10, n/30. The merchandise was received on 2 January 2022. The transportation cost was RM200. 27 Dec JB uses perpetual inventory system for maintaining inventory records. The policy of the company is to record purchases using the net method. REQUIRED: (Round the answer to two (2) decimal points) (a) Prepare a schedule to calculate the cost of inventory on hand at 31 December 2021 and the costof goods sold for the month ended 31 December 2021 using: i. the FIFO costmethod ii, the moving average cost method. (b) Explain whether the physical inventory should be equal to the amount indicated by the inventory record under the perpetual inventory system.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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