FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
thumb_up100%
Transcribed Image Text:Resgan Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Reagan's records are as follows:
Inventory at Decenber 31 (based on a physical count
of goods in Reagan's warchouse on December 31)
$1,400,e0e
Accounts payable at December 31:
Vendor
Baker Corpany
Charlie Corpany
Dolly Corpany
Еagler Companу
Full Company
Amount
$ 295,000
248, 000
Terms
28, 10 days, пet 38
Net 30
Net 30
330,eee
Net 30
255, 0ee
Net 30
Greg Company
Net 30
Accounts payable, December 31
$1,120,000
Sales for the year
$9,750,eee
Additional Information:
1. Parts held by Reagan on consignment from Charlie, amounting to $230,000, were included in the physical count of goods in
Reagan's warehouse and in accounts payable at December 31.
2 Parts totaling $37,000, which were purchased from Full and paid for in December, were sold in the last week of the year and
appropriately recorded as sales of $43,000. The parts were included in the physical count of goods in Reagan's worehouse on
December 31 becouse the parts were on the loading dock waiting to be picked up by customers.
3. Parts in transit on December 31 to customers, shipped f.o.b. shipping point on December 28, amounted to $64,000. The customers
received the parts on January 6 of the following year. Sales of $70,000 to the customers for the parts were recorded by Reagan on
January 2.
4. Retsilers were holding goods on consignment from Resgan, which had a cost of $360,000 and a retail value of $400,000.
5. Goods were in transit from Greg to Reagen on December 31. The cost of the goods was $40,000, and they were shipped f.o.b.
shipping point on December 29.
6. A freight bill in the amount of $3,500 specifically relating to merchandise purchased in December, all of which was still in the
inventory at December 31, was received on January 3. The freight bill was not included in either the inventory or in acounts
payable at December 31.
7. All the purchases from Baker occurred during the lsst seven days of the year. These items have been recorded in sccounts payable
and eccounted for in the physical inventory at cost before discount. Reegan's policy is to pay invoices in time to take odventege of
all discounts, adjust inventory occordingly, and record accounts payable net of discounts.
Required:
Complete the following schedule of adjustments to the initial amounts. (Amounts to be deducted should be Indicated with a minus
sign.)
Accounts
Payable
1,120,000 S 9,750,000
Inventory
Salee
Initial amounts
1,400,000S
Adjustments-increase (decrease):
1.
2.
3.
4.
5.
6.
7.
Total adjustments
Adjusted amounts
1,400,000
1,120,000
$ 9,750,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps
Knowledge Booster
Similar questions
- J 7 Choose from list of answer choices and show/explain work.arrow_forwardQuestion list O Question 1 O Question 2 O Question 3 O Question 4 More Info N 1 2 3 4 5 6 7 8 9 10 To Find F Given P FIP 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 K 0.8929 0,7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 Most likely estimates for a project are as follows. 0.3606 0.3220 To Find P Given F PIF Choose the correct choice below. Determine whether the statement "This project (based upon the most likely estimates) is profitable." is true or false. ✔Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year False O True To Find F Given A FIA 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 To Find P Given A PIA 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 To Find A Given F AIF 1.0000 04717 0.2963 0.2092 0.1574 0.1232 0.0991 0.0813 0.0877 0.0570 To Find A Given P…arrow_forward1 2 m 4n 07 9. White 9 A Talk S Aint Ia O ENG 10 O Annota S Annota SAnnota M Recibic I Downl ssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 台☆* + Facebook 6 Student Center Bb Blackboard WhatsApp Ggrammarly unemployment > |国Readi Maps Zoom Mark Turney owns Creative Corners. He does his banking at United Federal Bank (UFB) in Tucson, Arizona. The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security, Medicare, and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee), $3,020; Medicare tax payable (employer and employee), $734; FUTA tax payable, $84; SSUTA tax payable, $414; and Employees income tax payable, $4,622. Journalize the payment of the Form 941 deposit to UFB and the payment of the SUTA tax to the State of Arizona as of April 15, 20--. If an amount box does not require an entry, leave it blank. Page: POST. DATE DESCRIPTION…arrow_forward
- Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.41. The cost of equity is 13.5 percent and the pretax cost of debt is 7.6 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 25 percent?arrow_forwardLignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in $ millions). If the company's hurdle rate (MARR) is 20% per year, is this a profitable undertaking? Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20 per year. The present worth of the venture is $ million. (Round to two decimal places.)arrow_forwardKingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours 18.3 Wait time Process time Move time Queue time 1. 1 Inspection time 0.1 2.0 9.1 The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculations to 1 decimal place.)arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education