The following selected account data is taken from the records of Reese Industries for 2019. Assume the perpetual inventory system is used. Sales $644,363 Merchandise Inventory 578,620 Sales Discounts 58,000 Interest Expense 3,677 Sales Returns and Allowances 90,232 Interest Revenue 10,268 Cost of Goods Sold 228,598 Rent Expense 15,060 Depreciation Expense-Office Equipment 3,600 Insurance Expense 2,450 Advertising Expense 12,870 Accounts Receivable 100,440 Office Supplies Expense 1,600 Rent Revenue 23,670 Sales Salaries Expense 30,410 Accounts Payable 135,404 Common Stock 59,419 Marketing Expense 31,000 A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $455,000…

A: Formula: Net purchases = Gross purchases - Purchase discounts - Purchase returns and allowances.…

Q: Resa Merchandising had the following financial information: 2018 Beginning Inventory  - 0  Purchases…

A: The inventory is the stock of items which are sold by the firm in order to generate profit. The…

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A: Net purchase at retail = Goods available at retail - markups + markdowns  Goods available at retail…

Q: The following data were available from Hegge Department Store's records for the year ended December…

A: Retail inventory method:  Under this method, the closing stock of inventory is measured using cost…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…

Q: Compute for the net sales that would be reported in LIVA company's Income Statement. You are to be…

A: Calculation of Gross Sales Gross Sales = Goods available for Sale at retail – Ending Inventory at…

Q: The following information was taken from the accounting records of Chicoutimi Ltée. and Jonquière…

A: Formula: Average inventory=Opening inventory+Closing inventory2

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $453,000…

A: Net Purchases = Gross purchases - Purchase discounts - Purchase returns and allowances Cost of goods…

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: 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: Fill out the following journal entries based on this info?: Palisade Creek Co. is a merchandising…

A: Journal entry:   Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Presented below is information related to Windsor, Inc. for the month of January 2020. Ending…

A: Closing entries are used to close the temporary accounts to the permanent account. The income…

Q: The following information was available for the year ended December 31, 2019: Net sales Cost of…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: The following selected information is presented for Bramble Limited for the year ended February 28,…

A: The income statement is prepared to find the net income or loss incurred during the period.

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: Ripken Company uses a perpetual inventory system and reported the following transactions involving…

A: Note: Since we are entitled to answer 1 question up to 3 sub-parts, we’ll answer the first question…

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: Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500…

A: Income statement is a statement showing the revenues and related expenses calculated to arrive at…

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: The following selected accounts and the current balances apper in the ledger of Anderson Co., for…

A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…

Q: . The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the…

A: Solution: Raleigh Department Store LIFO Retail Method   Cost   Retail Cost to Retail ratio…

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 data were extracted from the accounting records of Harkins Company for the year ended…

A: a.Calculate the cost of goods sold of Company H.

Q: On January 1, 2019, the general ledger of Global Corporation included supplies of $1,600. During…

A: Supplies expense can be calculated by adding up the value of inventory purchased during the year and…

Q: a. The inventory at January 1, 2019, had a retail value of $51,000 and a cost of $38,060 based on…

A: The cost-to-retail ratio, also known as the cost-to-retail percentage, reveals what proportion of…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Average Cost Method: The average cost technique gives a cost to inventory items based on the overall…

Q: Davi Company has apprehensions of possible pilferage in the merchandise inventory on December 31,…

A: Gross sales are the amount of sales that includes the amount of sales discount allowed to the…

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: January 15, 2022; 5,000 balls @ P28 Sales: January 5, 2022; 4,500 balls January 20, 2022; 5,200…

A: Valuation of inventory may be based on : 1. LIFO: Last in first out is a method used for the…

Q: [The following information applies to the questions displayed below.] Nix'lt Company's ledger on…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $456,000…

A: Cost of Goods sold is the amount incurred to produce the products sold by the business during the…

Q: Presented below is selected information related to Metlock, Inc. for the year ended January 31,…

A: Given, Ending inventory per perpetual records = $31,180 Ending inventory actuall on hand = $30,480

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $454,000…

A: Purchases is the amount of goods and services that are being acquired from some outside person. It…

Q: Presented below is information related to Wildhorse Co., owned by D. Flamont, for the month of…

A: Income = Sales- expenses = $369000- $333300 = $ 35700 Cost of goods sold= $214000+$ 3000= $ 217300

Q: Bandy’s Barbeque recorded the following financial results:     Fiscal year 2020 Fiscal year 2019…

A: Both the raw materials used in production and the final commodities that are ready to sale are…

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Q: Presented below is selected information related to Blue Co. for the month of January 2022. Ending…

A: Ending inventory are overstated by $800 ($23,710 - $22,910)

Q: Syvels Trading uses the retail inventory method to estimate inventory. accounting records for the…

A: Particulars Cost Retail Opening Stock 617,000 1,057,000 Purchases 1,281,000 2,158,000 Purchase…

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

A: Record closing entries for Johnson Co. on December 31, 2020 as shown below:

Q: The records of Earthly Goods provided the following Information for the year ended December 31,…

A: Year end inventory means cost of ending inventory which is left at the end of the period.

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A: The retail inventory technique seems to be an accounting method for estimating the worth of a…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Calculation of Net Sales Net Sales = Gross Sales - Sales Discount Net Sales = 2,843,000 - 16,000 Net…

Q: Luxe Mobile Homes reported the following in its financial statements for the year ended December 31,…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…

Q: Presented below is information related to Tamarisk Corporation for the month of January 2020. Cost…

A: Closing Entry: Closing entries are passed at the end of accounting period to close the balances of…

Q: Luxe Mobile Homes reported the following in its financial statements for the year ended December 31,…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Data below for the year ended December 31, 2021, relates to Houdini Inc. Houdini started business…

A: Estimated ending inventory is calculated by deducting the net sales from goods available for sale.

Q: The following data were taken from the accounting records of Wrecking Balls, Inc Balance at January…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

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…

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.