FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 5, Problem 2E
To determine
Introduction: Sales on FOB destination basis means the goods remain the property of the seller till the time it reaches the destination of the buyer. All the risk and rewards related to transit is borne by the seller.However, Sales on the FIB shipping point means the property in goods are transferred to the buyer as soon as the goods are dispatched to the buyer.
: The cost of inventory for the purchaser.
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Journalize the following transactions under perpetual inventory system
Q) Purchased 10 keyboards at a cost of 25 per package for a total of $250.
Q) Sold three customers for cash to a customer at $50 each for a total of $150.
Q) Allowed one customer to return one keyboard for a cash refund of $50.
Q) Returned one damaged keyboard from the package worth of $50.
Recording an Inventory Purchase FSET
Shields Company has purchased inventories incurring the following costs (a) the invoice amount of $660, financed through a $550 note with the remainder paid in cash, (b) shipping charges of $33 on account, (c)
interest of $11 accrued on the $550 borrowed to finance the purchase, and (d) 59 on account for the cost of moving the inventory to the company's warehouse
a. Determine the cost to be assigned to the inventory.
b. Record the transactions using the financial statement effects template
Note: Use negative signs with your answers, when appropriate
Transaction
Purchase inventory
D. Shipping charges
Interest on note
d. Cost of moving inventory
Cash Asset
....
*995
OU
Noncash
Asset
*>*
Balance Sheet
Liabilities
****
Contributed
Capital
SSSS
Earned
Capital
Revenues
AAAA
Income Statement
Expenses
ARAK
Net Income
Costs of $15,000 were incurred to acquire goods and make them ready for
sale. The goods were shipped to the buyer (FOB shipping point) for a cost of
$1,200. Additional necessary costs of $2,400 were incurred to acquire the
goods. No other incentives or discounts were available. Compute the
buyer's total cost of merchandise inventory.
Multiple Choice
$16,200
$17,400
$18,600
$15,000
Chapter 5 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 5 - Use the following information from Marvel Company...Ch. 5 - Use the following information from marvel company...Ch. 5 - Use the following information from Marvel Company...Ch. 5 - Use the following information from Marvel company...Ch. 5 - Periodic: A company reports the following...Ch. 5 - Prob. 6MCQCh. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQ
Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQCh. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 5QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - Prob. 23QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Perpetual: Alternative cost flows P1 Warnerwoods...Ch. 5 - Periodic: Alternative cost flows P3 Refer to the...Ch. 5 - Perpetual: Alternative cost flows P1 Montoure...Ch. 5 - Prob. 4PSACh. 5 - Prob. 5PSACh. 5 - Analysis of inventory errors A2 Navajo Company’s...Ch. 5 - Prob. 7PSACh. 5 - Periodic: Income comparisons and cost flows A1P3...Ch. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Lower of cost or market P2 A physical inventory of...Ch. 5 - Analysis of inventory errors A2 Hallam Company’s...Ch. 5 - Prob. 7PSBCh. 5 - Periodic: Income comparisons and cost flows A1P3...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Prob. 5SPCh. 5 - Prob. 1AACh. 5 - Prob. 2AACh. 5 - Prob. 3AACh. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Visit four retail stores with another classmate....
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