User Account

All Pages

Determine the proper inventory balance for Sarasota Company

Assignment Help Accounting Basics
Reference no: EM132468349

Problem - Sarasota Company asks you to review its December 31, 2017, inventory values and prepare the necessary adjustments to the books. The following information is given to you.

1. Sarasota uses the periodic method of recording inventory. A physical count reveals $246,635 of inventory on hand at December 31, 2017.

2. Not included in the physical count of inventory is $14,091 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.

3. Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $13,440 on December 31. The merchandise cost $7,718, and Champy received it on January 3.

4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $16,412. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.

5. Not included in inventory is $8,967 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.

6. Included in inventory was $10,960 of inventory held by Sarasota on consignment from Jackel Industries.

7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped on December 31 after it was counted. The invoice was prepared and recorded as a sale for $19,845 on December 31. The cost of this merchandise was $11,046, and Kemp received the merchandise on January 5.

8. Excluded from inventory was a carton labeled "Please accept for credit." This carton contains merchandise costing $1,575 which had been sold to a customer for $2,730. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged; Sarasota will honor the return.

Required - Determine the proper inventory balance for Sarasota Company at December 31, 2017.

Reference no: EM132468349

Questions Cloud

What is the expected amzn value per share : What is the expected AMZN value per share in 2028 in the bear case using the exit multiple terminal valuation method?what is the exit multiple terminal value
Solutions to meet the needs of the patients : Mylan MYL +0% pharmaceutical company has a virtual monopoly on EpiPens after a voluntary recall felled their only competitor*, Sanofi's Auvi-Q,
What is the maximum annual profit that the company can earn : What is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit
What is company co enterprise value in the service : What is Company Co.'s enterprise value in the Service Package segment based on 2019E total revenue and 2019E mean EV/Revenue multiple?
Determine the proper inventory balance for Sarasota Company : A physical count reveals $246,635 of inventory on hand at December 31, 2017. Determine the proper inventory balance for Sarasota Company at December
Make a model for an organizational buyer : Using any product (goods or services) and any knowledge you have from developing a market strategy and understanding customer behavior,
Development of applications and processes for chargemaster : Explain chargemasters Assignment Description You are the assistant director in a health information management department
What are key sales activities : What are key sales activities that could use to build and maintain the sales pipeline.
Question regarding the data in absentia : Deep observation and analysis of SWOT provide companies with ongoing marketing intelligence, and this practice is an essential component of a firm

Reviews

Write a Review

Accounting Basics Questions & Answers

  What the company report for its net bond liability balance

What would the company report for its net bond liability balance after its first interest payment on March 31, 2022, rounded up to the nearest thousand

  Prepare a tuition revenue budget

Western State University (WSU) is preparing its master budget for the upcoming academic year. Prepare a tuition revenue budget for the upcoming academic year

  Determine the actual manufacturing overhead for the year

Work-in-Process Inventory account: Contained charges for overhead of $875,000. Determine the actual manufacturing overhead for the year

  To access the standard deduction table

Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family friend), Flo (a niece, age 18), and Jerold (a nephew, age 18).

  Discuss employee will be paid on the last day of each month

The employee will be paid on the last day of each month. Should a journal entry be made on March 6

  Compute the predetermined overhead rate

Yancey Productions is a film studio that uses ajob-order costing system. Compute the predetermined overhead rate

  Do you believe that prices should reflect the value

Do you believe that prices should reflect the value that consumers are willing to pay or should prices primarily reflect the cost involved in making a product.

  What is the final amount in amounts payable

Receive payment of $12,000 owed by a customer. Purchase equipment for $45,000 in cash. What is the final amount in Amounts Payable

  Repaying the entire loan

If you paid an extra $100 per month to reduce the principal due on the mortgage, how long would it take to repay half the principal due? In the case where you paid an extra $100 per month, how long would it take to repay the entire loan?

  Analysis and research of data security risks

Read the synopsis of the scenario you viewed at the beginning of this module: There is a breach in security and some data has become suspect. All systems need to be evaluated and made secure.

  Prepare an analysis of balance sheet and income statement

Prepare a vertical analysis of the Balance Sheet and Income Statement for 2011 and 2012. Note any areas of concern and suggested actions management may need.

  Calculate the predetermined overhead allocation rate.

a. Calculate the predetermined overhead allocation rate. b. Calculate the overhead cost applied during the year.c. Determine the amount of over- or underapplied overhead.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd