Questions from Financial Accounting

Q: In taking a physical inventory at the end of Year 1,

In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventory by $10,000. Determine how this error affects each of the following. a....

Q: A solar panel dealer acquires a used panel for $9,

A solar panel dealer acquires a used panel for $9,000, with terms FOB shipping point. Compute total inventory costs assigned to the used panel if additional costs include $1,500 for sales staff salari...

Q: Dexter Company uses the direct write-off method. Prepare journal

Dexter Company uses the direct write-off method. Prepare journal entries to record the following transactions. Mar. 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from...

Q: Match each document in a voucher system with its description.

Match each document in a voucher system with its description. Document 1. Purchase requisition 2. Purchase order 3. Invoice 4. Receiving report 5. Invoice approval 6. Voucher Description A. An itemize...

Q: 1. At year-end, Barr Co. had shipped

1. At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which company should include the $12,500 of merchandise in transit as part of its year-end inventory? 2. Parris C...

Q: Walberg Associates, antique dealers, purchased goods for $75,

Walberg Associates, antique dealers, purchased goods for $75,000. Terms of the purchase were FOB ship- ping point, and the cost of transporting the goods to Walberg Associates’ warehouse was $2,400. W...

Q: Brinkley Company, which began operations in Year 1, had the

Brinkley Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 Jan. 5 Brinkley purchased 20,000 shares (25% of total) of Bloch’s com...

Q: Laker Company reported the following January purchases and sales data for its

Laker Company reported the following January purchases and sales data for its only product. Required The company uses a periodic inventory system. Determine the cost assigned to ending inventory and t...

Q: Use the data in Exercise 5-3 to compute gross profit

Use the data in Exercise 5-3 to compute gross profit for the month of January for Laker Company similar to that in Exhibit 5.8 for the four inventory methods. 1. Which method yields the highest gross...

Q: Refer to the information in Exercise 5-3 and assume the

Refer to the information in Exercise 5-3 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) specific identification...