Problem 13-12 (IAA)In December 2021, Unanimous Company had a significantportion of inventory stolen.The entity determined the cost of inventory not stolen to beP100,000.20212020PurchasesPurchase returns and allowancesSalesSales returns and allowancesBeginning inventory5,200,000240,0007,880,00080,0001,200,0005,000,000200,0008,200,000200,0002,000,000What amount should be reported as cost of the stolen inventory?a. 700,000b. 600,000c. 644,000d. 144,000

The cost of goods sold is calculated as difference between cost of goods available for sale and…

Problem 13-12 (IAA) In December 2021, Unanimous Company had a significant portion of inventory stolen. The entity determined the cost of inventory not stolen to be P100,000. 2021 2020 Purchases Purchase returns and allowances Sales 5,200,000 240,000 7,880,000 80,000 1,200,000 5,000,000 200,000 8,200,000 200,000 2,000,000 Sales returns and allowances Beginning inventory What amount should be reported as cost of the stolen inventory? bode a. 700,000 p. 600,000 =. 644,000 1. 144,000

Problem 13-12 (IAA) In December 2021, Unanimous Company had a significant portion of inventory stolen. The entity determined the cost of inventory not stolen to be P100,000. 2021 2020 Purchases Purchase returns and allowances Sales 5,200,000 240,000 7,880,000 80,000 1,200,000 5,000,000 200,000 8,200,000 200,000 2,000,000 Sales returns and allowances Beginning inventory What amount should be reported as cost of the stolen inventory? bode a. 700,000 p. 600,000 =. 644,000 1. 144,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 28CE: Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020....

See similar textbooks

Similar questions

Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020. Early in 2020, McLelland discovers that the December 31, 2019 ending inventory was overstated by $20,000. For simplicity, ignore taxes. Required: 1. What is the correct net income for 2019? For 2020? 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020?
portion of inventory stolen. Purchase returns and allowances The entity determined the cost of inventory not stolen to be In December 2020, Unanimous Company had a significant Problem 13-10 (IAA) P100,000. 2020 2019 Purchases Purchase returns and allowances Sales Sales returns and allowances Beginning inventory That is the estimated cost of the stolen inventory? 5,200,000 240,000 7,880,000 80,000 1,200,000 5,000,000 200,000 8,200,000 200,000 2,000,000 a. 700,000 b. 600,000 c. 644,000 d. 144,000
PROBLEM 1. Nyx Company had determined its December 31, 2021 inventory on a FIFO basis at P 410,000. Nyx records losses that result from applying the lower of cost or net realizable value. Information pertaining to that inventory follows: Estimated selling price Normal Profit margin Estimated disposal costs Current replacement cost P 400,000 60,000 20,000 260,000 1. How much loss should Nyx recognize at December 31, 2021?
Problem 13On the December 31, 2020 balance sheet of Mann Co., the current receivables consisted ofthe following:Trade accounts receivable 93,000Allowance for uncollectible accounts (2,000)Claim against shipper for goods lost in transit (November 2020) 3,000Selling price of unsold goods sent by Mann on consignment at130% of cost (not included in Mann’s ending inventory) 26,000Security deposit on lease of warehouse used for storing some inventories 30,000Total 150,000On December 31, 2020, the correct total of Mann’s current net receivables was _________. Problem 14The following information relates to Jay Co.’s accounts receivable for 2020:Accounts receivable, 1/1/20 650,000Credit sales for 2020 2,700,000Sales returns for 2020 75,000Accounts written off during 2020 40,000Collections from customers during 2020 2,150,000Estimated future sales returns at 12/31/20 50,000Estimated uncollectible accounts at 12/31/20 110,000What amount should Jay report for accounts receivable, before allowances…
Problem 16-4 (PHILCPA Adapted) Malampaya Company showed income before income tax of P6,500,000 on December 31, 2021. The year-end verification of the transactions revealed the following errors: * P1,000,000 worth of merchandise was purchased in 2021 and included in the ending inventory. However, the purchase was recorded only in 2022. A merchandise shipment valued at P1,500,000 was properly recorded as purchase at year-end. Since the merchandise was still at the port area, it was inadvertently omitted from the inventory on December 31, 2021. *Advertising for December 2021, amounting to P500,000, was recorded when payment was made in January 2022. * Rent of P300,000 on an equipment applicable for six months was received on November 1, 2021. The entire amount was reported as income upon receipt. Insurance premium covering the period from July 1, 2021 to July 1, 2022 amounting to P200,000 was paid and recorded as expense on July 31, 2021. The entity did not make any adjustment at the end…
13 Mactan Company’s statements for 2018 and 2019 included the following errors: 12/31/18 inventory understated P2,000,000 12/31/19 inventory overstated 1,000,000 Depreciation for 2018 understated 400,000 Depreciation for 2019 overstated 800,000 How much should retained earnings be retroactively adjusted on January 1, 2020? Group of answer choices 1,400,000 decrease 600,000 increase 600,000 decrease 1,400,000 increase
PROBLEM 6: XXX Company is preparing its 2021 financial statements. Prior to any adjustments, inventory is valued at P1,605,000. The following information has been found relating to certaininventory transactions from your cut-off test: A. Goods valued at P110,000 are on consignment with a customer. These goods werenot included in the ending inventory figure. B.Goods costing P87,000 were received from a vendor on January 5, 2022. The relatedinvoice was received and recorded on January 12, 2022. The goods were shippedonDecember 31, 2021, terms FOB shipping point. C. Goods costing P85,000, sold for P102,000, were shipped on December 31, 2021, andwere delivered to the customer on January 2, 2022. The terms of the invoice wereFOBshipping point. The goods were included in the ending inventory for 2021 and thesalewas recorded in 2022. D. A P35,000 shipment of goods to a customer on December 31, terms FOB destinationwas not included in the year-end inventory. The goods cost P26,000…
Aljohn Company's year-end financial statements contained the following errors: 12.31.2021 12.31.2022 Ending inventory P95,000 understated P800,000 overstated Depreciation P250,000 understated An insurance premium of P600,000 was prepaid in 2021 covering the years 2021, 2022, and 2023. The entire amount was charged to expense in 2021. In addition, on December 31, 2022, fully depreciated machinery was sold for P150,000 cash, but the entry was not recorded until 2022. No corrections have been made for any of the errors. Ignore income tax. What was the total effect of the errors on retained earnings on December 31, 2022?
Problem 10-17 (IAA) Audacity Company counted the ending inventory on December 31, 2020 and reported the amount of P2,000,000 before any corrections. None of the following items were included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse are on consignment from another entity 150,000 Goods sold by the entity and shipped FOB destination were in transit on December 31, 2020 and received by the customer on January 2, 2021 %23 200,000 Goods purchased by the entity and shipped FŐB shipping point were in transit on December 31, 2020 and received by the entity on January 2, 2021 300,000 * Goods sold by the entity and shipped FOB shipping point were in transit on December 31, 2020 and received by the customer on January 2, 2021. 400,000 What amount of inventory should be reported on December 31, 2020? a. 2,500,000 b. 2,350,000 c. 2,900,000 d. 2,750,000
The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c. P990,000 a. P1,470,000 The cost of ending inventory for Product D is: c. P180,000 b. PP225,000 a. P270,000 d. P540,000 The Gross Profit (Loss) of Product F is: b. P101,250 c. P1,226,250 d. P(483,750) a. P168,750
What is the estimated cost of the missing inventory on December 31,2021? a. P151,000 b. P165,000 c. P420,000 d. P585,000
PROBLEM 15 Examination of the records of Hopper Company for the year ended December 31, 2021 revealed the following: • Inventory at January 1, 2021 was overstated by P71,000. • Inventory at December 31, 2021 was understated by P96,000. • During 2021, Hopper received a P60,000 cash advance from a customer for merchandise to be manufactured and shipped during 2022. The P60,000 was credited to sales revenue. • Profit (before adjustments) reported on the 2021 profit or loss was P658,000. Explain the right profit for 2021