Questions from Intermediate Accounting

Q: The Kwok Company’s inventory balance on December 31, 2021, was

The Kwok Company’s inventory balance on December 31, 2021, was $165,000 (based on a 12/31/2021 physical count) before considering the following transactions: 1. Goods shipped to Kwok f.o.b. destinatio...

Q: The December 31, 2021, year-end inventory balance of

The December 31, 2021, year-end inventory balance of the Raymond Corporation is $210,000. You have been asked to review the following transactions to determine if they have been correctly recorded. 1....

Q: The Phoenix Corporation’s fiscal year ends on December 31. Phoenix determines

The Phoenix Corporation’s fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company’s control...

Q: On July 15, 2021, the Nixon Car Company purchased 1

On July 15, 2021, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method...

Q: A fire destroyed a warehouse of the Goren Group, Inc.,

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 = $1,900,000 Purchases to date =...

Q: National Distributing Company uses a periodic inventory system to track its merchandise

National Distributing Company uses a periodic inventory system to track its merchandise inventory and the gross profit method to estimate ending inventory and cost of goods sold for interim periods. N...

Q: San Lorenzo General Store uses a periodic inventory system and the retail

San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of Octobe...

Q: During 2021, its first year of operations, Hollis Industries recorded

During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estima...

Q: Campbell Corporation uses the retail method to value its inventory. The

Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Required: Determine the December 31, 2021, inventory by applying the conve...

Q: Crosby Company owns a chain of hardware stores throughout the state.

Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. T...