Required Determine the amount of inventory lost by Quebec Traffic as a result of the fire. Quebec Traffic has a December 31 year-end. Round the gross profit ratio to the nearest whole percentage point.
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- On May 17, it was discovered that a material amount of inventory had been stolen. A physical count discloses that P55,000 of merchandise was on hand as of May 17. The following additional data is available from the accounting records: Inventory, January 1 ...................................................................... P 62,000 Purchases, January 1 - May 17 (includes P4,000 shipped FOB shipping point May 16, received May 19) ...............................114,000 Sales (goods delivered to customers), Jan 1 - May 17........90,000 Records indicate that the company's gross profit has averaged 40 percent of selling prices. Estimate the amount of loss due to theft.Bob "Big Bobby" Weinstein Ltd. experienced complete melt-down of all inventory due to a very suspicious fire. The company's updated general ledger revealed the following balances at September 13th, the date of the casualty loss: Historically the company's gross profit had been -> 27.00% a Calculate the: b Sales... Sales Returns. Sales discounts ........ Inventory Jan 1st........ Purchases.. с Purchase returns......... Purchase discounts....... d Cost of Goods Available for Sale Estimated Gross Profit as of September 13th Estimated Cost of Goods Sold as of September 13th 5,740,000 16,490 3,510 516,844 4,210,000 25,000 1,844 Estimated cost of destroyed Inventory as of September 13th + a b с d AnswersOn September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire inventory. The entity has a gross profit of 30% on cost. The following data were available for nine months ended September 30, 2021: Inventory, January 1 Net purchases Net sales P 1,100,000 6,000,000 7,280,000 A physical inventory count revealed unusable damaged goods which can be sold for P 100,000. 18. What is the estimated cost of goods sold for the nine months ended September 30, 2020? А. Р 5,500,000 В. Р4,970,000 С. Р 5,096,000 D. P5,600,000 19. What is the estimated amount of fire loss? A. P1,500,000 В. Р 1,400,000 С. Р 2,004,000 D. P1,964,000 20. Who is the Patron Saint of Accountants? A. St. Mathew B. St. Peter C. St. Benedict D. St. James
- Assuming a company’s year-end inventory were overstated by $5,000, indicate the effect(overstated/understated/no effect) of the error on the following balance sheet and income statement accounts.A. Income Statement: Cost of Goods SoldB. Income Statement: Net IncomeC. Balance Sheet: AssetsD. Balance Sheet: LiabilitiesE. Balance Sheet: EquityCrane Company reported the following information for November and December 2022. Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue (a) November December $531,000 $606,000 138,000 Gross profit rate 181,650 Crane's ending inventory at December 31 was destroyed in a fire. 855,000 1,000,000 Compute the gross profit rate for November. 181,650 %On February 7 of the following year,the merchandise inventory was destroyed by fire based on the following data obtained from the accounting records,estimate the cost of the merchandise destroyed: Jan 1 merchandise inventory 140,600 Jan 1-Feb 7 purchase (net) 38,000 Jan 1-Feb sales (net)........68,000 Estimated gross profit rate ....40%
- Hot Pepper Company had the following information in its accounting records at year end:Inventory Cost $4,000,000It estimates the net realizable value of this inventory is $3,500,000. As a result of this information Hot Pepper Co. would: Make a journal entry debiting a loss on inventory decline for $500,000 Make a journal entry debiting the allowance for inventory valuation for $500,000 Make a journal entry crediting the allowance for inventory valuation for $500,000 Make a journal entry debiting a gain on market appreciation for $500,000 Make no entryShockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b) Profit (c) Total current assets (d) Equity a. Cost of goods sold: Reported Adjustments: Dec. 31, 2020 error Dec. 31, 2021 error In making the physical counts of inventory, the following errors were made: • Inventory on December 31, 2020: understated $80,000 • Inventory on December 31, 2021: overstated $22,000 Corrected b. Profit: Required: For each of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the following and show the adjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a min sign.) Reported Adiustments: Dec. 31. 2020 error $ $ $ $ 2020 Financial Statements for Year Ended December 31. 2022 820,000 281,000 2020 2021 765,000 $ 897,000 $ 270,000 325,000 1,255,000 1,365,000 1,387,000 1,530,000 270,000 $ 80.0001 2021 1,200,000 1,332,000 2022 765,000 $ 897,000 $ 820,000 (80,000)…Malcolm Lee Industries reported the following amounts in its December 31st financial statements: 2023 $270,500 55,400 Cost of Goods sold Ending Inventory Errors were made in each year as follows: in 2023, ending inventory was overstated by $10,500 while in 2024, ending inventory was understated by $6,800. Explain the impact of these errors for 2024 profit and owners' equity. Profits will be Owners' equity will be 2024 $287,700 55,400 by $ by $
- A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2021 $1,900,000Purchases to date 5,800,000Freight-in 400,000Sales to date 8,200,000 The gross profit ratio has averaged 20% of sales for the past four years.Required:Use the gross profit method to estimate the cost of the inventory destroyed in the fire.The following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008: Merchandise inventory, July 1, 2007 . . . . . . . . . . . . $ 183,250 Merchandise inventory, June 30, 2008 . . . . . . . . . . 200,100 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,279,600 Purchases returns and allowances . . . . . . . . . . . . . . 41,200 Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000 Transportation in . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250 a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008.A fire destroyed a warehouse of the Goren Group, Incorporated, on May 4, 2024. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2024 Purchases to date Freight-in Sales to date $ 1,940,000 5,840,000 Estimated loss from fire 440,000 8,600,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.