The company uses the periodic inventory system.  A physical count of inventory on December 31 resulted in an inventory amount of $50,000. Instructions: 3. Prepare a Statement of Financial Position as at December 31, 2019. ​ a. Report Form b. Account Form

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Discount on Payment  = Total amount due x discount rate = $40,000 x 3% = $1,200

Q: Castle Furnishings Company’s perpetual inventory records indicate that $675,400 of merchandise…

A: Shrinkage: The cost of difference between the recorded inventory value and physical count of…

Q: The company uses the periodic inventory system.  A physical count of inventory on December 31…

A: Retained earnings is the account that is a part of the company’s income and appears as a part of the…

Q: Selected information from the statement of financial position of SHY Company at November 30 and…

A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

Q: Paragon Tire Co.’s perpetual inventory records indicate that $2,780,000 of merchandise should be on…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Selected information from the statement of financial position of ERNESTO Company at November 30 and…

A: Gross sales for the month of December = Ending accounts receivable + Cash collected from credit…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: Trial balance is the list of accounts having balances at the end of a…

Q: At the end of Concord Department Store’s fiscal year on November 30, 2020, these accounts appeared…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: An income statement is the one that is prepared to determine the company's profitability from…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: FIFO is a method in which the inventory which is acquired first by the business organization is sold…

Q: The beginning inventory of Norcal Wholesalers was $113,000, and the ending inventory is $95,319.What…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial…

A: The question is based on the concept of Final Accounts. As per the Bartleby guidelines we are…

Q: At the end of Flounder Department Store's fiscal year on November 30, 2020, these accounts appeared…

A: Net sales revenue = Sales revenue - Sales returns and allowances Cost of goods sold = Beginning…

Q: Marigold Corp, reported the following income statement data for a 2-year period. Sales revenue. Cost…

A: Introduction: If ending balance of inventory is overstated in any period then it will also result in…

Q: The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019,…

A: Merchandise Inventory requires special treatment under the periodic inventory system because…

Q: A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with…

A: Debit what comes in and credit what goes out Debit the receiver and credit the giver Debit all…

Q: A company that uses the perpetual inventory system purchased inventory for $1,000,000 on account…

A: The Perpetual inventory system keeps the record of inventory separately and it is updated with every…

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: Answer: Journal Entries:

Q: Selected information from the statement of financial position of FIGHTING Company at November 30 and…

A: Purchases = Ending accounts payable + cash paid to suppliers of inventory -  beginning accounts…

Q: Givoly Inc. uses a periodic inventory system. At the end o the accounting records provided the…

A:

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that…

Q: Presented below are selected account balances for Waterway Co. as of December 31, 2020. Inventory…

A: The closing entries are prepared to close the temporary accounts to income summary account.

Q: The following additional information was made available before the year-end closing: 1. Inventory as…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense…

A: The Statement of owner’s equity represents a summary of the net amount of owner’s equity accounts…

Q: Jungkook Corp. has reported an inventory balance of P2,500,000 (based on physical count on January…

A:

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Working note: Computation of cost of goods sold: Cost of goods sold=Beginning…

Q: Wards’ inventories are determined using FIFO (periodic). Wards provided the following information…

A: Total units available for sale = Beginning inventory + Purchases = 60+40+95+30 = 225 units Units…

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: Perpetual inventory system is a system that allows immediate tracking by recording the sale or…

Q: "On January 1, 2019, the general ledger of Global Corporation included supplies of $1,000. During…

A: SUPPLIES EXPENSE FOR THE YEAR :  = OPENING BALANCE OF SUPPLIES + PURCHASED SUPPLIES DURING THE YEAR…

Q: ed in the physical count of inventory is P140,000 of merchandise purchased on Dec.26 from Standing.…

A: The answer has been mentioned below.

Q: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Periodic inventory system is the one under which the sales and purchases are recorded after a span…

Q: AA Company reported inventory on December 31, 2018 at P6,000,000 based on a physical count of goods…

A: FOB Destination means that the title to the goods passes from the owner to the buyer when the goods…

Q: Prepare a retained earnings statement for the year ending December 31, 2019. 2. Prepare a Statement…

A:

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Cost of goods sold = Beginning inventory + purchases - ending inventory = P450000 + 2950000 - 925000…

Q: Following information is available for Nick Company for the year ended 2020:     Additional…

A: Ratio analysis is used by organizations to evaluate the performance of the organization. It also…

Q: Hero Company reported inventory on December 31, 2019 at 6,000,000 based on physical count of goods…

A: FOB shipping point implies that ownership of goods are transferred from seller to the buyer when…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: What is meant by a Balance Sheet? It is the statement of financial position comprised of Assets,…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: 3 different parts

A: Prepare journal entry for purchases of inventory.

Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…

A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

Q: Selected Account Balances from The Adjusted Trial Balance of Harris Company as of December 31, 2019…

A: solution given Beginning merchandise inventory 22000 Office supplies 400 Sales…

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: Morton Company uses a perpetual inventory system. On December 1, 2019, the company purchased…

A: The term discount indicates that the buyer can take the discount of a certain percent if he paid all…

Q: The company uses the periodic inventory system. A physical count of inventory on December 31…

A: Statement of Retained Earnings: This statement shows the details about retained earnings of an…

Q: Selected information from the statement of financial position of FAIRVIEW Company at November 30 and…

A: Wages expense for the month of December = Ending wages payable + cash paid for wages - beginning…

Q: On January 1, 2020, the general ledger of Global Corporation included supplies inventory of $1,000.…

A: Solution:- Calculation of the 2020 supplies expense as follows under:- Basic information:- On…

Q: Hall Company’s inventory at December 31, 2019 was P1,500,000 based on a physical count of goods…

A: Included in the physical count were goods billed to a customer FOB shipping point on December 31,…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.