Carbonandum universe produces card board and has the below mentioned details for March 31, 2021: Particulars Opening inventory Amount P300,000 Purchases P2,016,000 Carriage inwards Wages Sales Returns inwards Return outwards | Closing inventory Pass necessary adjusting closing entries in the year end. P90,000 P150,000 P3,300,000 P300,000 P216.000 P600,000
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- Presented are the transactions of Mandaue Electrical Supplies for the month of October 2019. Record all transactions using the Perpetual inventory assuming credit terms extended to customers are 2/10, n/30. Prepare your own Journal sheet.Presented are the transactions of Mandaue Electrical Supplies for the month of October 2019. Record all transactions using the Periodic inventory assuming credit terms extended to customers are 2/10, n/30.Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
- Perpetual versus Periodic Inventory Systems Howard, Inc. is a merchandising company that began operations on January 1, 2019. During January, the following inventory transactions occurred: Required: 1. Assume that Howard uses a perpetual inventory system. Prepare the journal entries to record the January inventory transactions. 2. Assume that Howard uses a periodic inventory system. Prepare the journal entries to record the January inventory transactions. Be sure to include any adjusting entries necessary. 3. Next Level Howards CEO states that a perpetual inventory system would result in a better inventory valuation. Evaluate this statement and provide a discussion of the benefits of each type of inventory system.Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.The beginning balance represented the unexpired portion of a one-year policy On Nov. 30, 2019, the end of fiscal year, the following information is available to enable year were P45,260. The ending inventory revealed supplies on hand of P 13,970. Preparing the Adjusting Entries at Year-End a. The Supplies account showed a beginning balance of P21,740. Purchases during the you you to prepare Edgar Detoya Research and Development adjusting entries: b. The Prepaid Insurance account showed the following on November 30. Beginning balance July 1 P35,800 42,000 October 1 72,720 The beginning balance represented the unexpired portion of a one-yeal pand purchased in September 2018. The July 1 entry represented a new one-year policy, eme the Oct. 1 entry is additional coverage in the form of a three-year policy. c. The following table contains the cost and annual depreciation for buildings ana equipment, all of which the entity purchased before the current year: Annual Depreciation P145,000…
- With this information, how many units and at what cost are in inventory to start February? How many units and at what cost are in inventory to start Februry Balance Sheet for end of 2019 Assets Cash 77,250 Accounts Receivable (net of allowance of 7200) 237,884 Inventory 45,500 (1000 units at $45.50 each)Prepaid Insurance 1,600 Supplies 1,625 Total Current Assets 363,859 Property, Plant and Equipment, Net 177,500 Land 32,000 Total Assets 573,359 Liabilities Accounts Payable 94,552 Unearned Revenue 45,200 Interest Payable 2,100 Salaries Payable 6,600 Total Current Liabilities 148,452 Long Term Debt 246,100 Total Liabilities 394,552…The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?A perpetual inventory system is used by EhsaanTraders and an inventory record card is maintained for each type of product in stock. The following transaction show beginning inventory, purchases, and sales of product JC209 for the month of May 2020 : May 01 : Balance on hand, 20 units, cost Rs. 40 each. May 05 : Sales, 8 units, sales price Rs. 60 each. May 06 : Purchases, 20 units, cost Rs. 45 each. May 11 : Purchases, 15 units, cost Rs. 50 each. May 21 : Sales, 10 units, sales price Rs. 60 each. May 31 : Sales, 15 units, sales price Rs. 65 each. May 31 : Purchases, 10 units, cost Rs. 55 each. Required : Calculate the cost of ending inventory under FIFO and Weighted Average Cost Method. Calculate the amount of cost of goods sold under FIFO and total sales during the month. Instead of perpetual, if Ehsaan Traders follows periodic inventory system, do you think if it will be beneficial in all business…
- Malone Company determined its ending inventory at cost and at LCNRV at December31, 2019, December 31, 2020, and December 31, 2021, as shown below. Cost LCNRV12/31/2019 $650,000 $650,00012/31/2020 780,000 712,00012/31/2021 905,000 830,000Instructions(a). Prepare the journal entries required at December 31, 2020, and at December 31,2021, assuming that a perpetual inventory system and the cost-of-goods-soldmethod of adjusting to LCNRV is used.(b). Prepare the journal entries required at December 31, 2020, and at December 31,2021, assuming that a perpetual inventory is recorded at cost and reduced toLCNRV using the loss method.XY Ltd’s sells T-shirts. It uses the periodic inventory system. It’s inventory at the beginning of themonth June and all purchases during the month of June 2019 are provided as below. Ignore GST. Units Totalcost ($)1/6 Beginning inventory 1050 $18,90010/6 Purchase 750 $14,17515/6 Purchase 450 $8,91023/6 Purchase 750 $15,750Totals 3,000 $57,735A physical count on 30 June verified that 975 units were on hand.Required:a) Determine the Ending inventory and Cost of Sales for the month of June, using the FIFO costingmethod. b) If all inventories are sold in the same price of $50, prepare the relevant part of the incomestatement for the month of June. c) Would you recommend the Perpetual Inventory System to the management of XY Ltd? Explain thereason for your recommendation.D Company began operations in 2018 and determined its ending inventory at cost and at a LCNRVat December 31,2018 and December 31, 2019. This information is presented below.Cost NRV12/31/18 520,000 485,00012/31/19 615,000 585,000Required1. Prepare journal entries required at December 31,2018 and December 31, 2019, assumingthat the inventory is recorded at LCNRV, using a perpetual inventory system and the costof goods sold method.2. Prepare journal entries required at December 31,2018 and December 31, 2019, assumingthat the inventory is recorded at LCNRV, using a perpetual inventory system and the lossmethod.3. Which of the two methods above provides the higher income in each year ?