Solution-Differences between the book balance and the

Differences between the book balance and the physical count

Reference no: EM13933785

Royal Sales experienced the following events during 2013, its first year of operation:

1. Started the business when it acquired $80,000 cash from the issue of common stock.
2. Paid $35,000 cash to purchase inventory.
3. Sold inventory costing $21,000 for $40,500 cash.
4. Physically counted inventory showing $13,500 inventory was on hand at the end of the accounting period.

Required:

a. Open appropriate ledger T-accounts, and record the events in the accounts.
b. Prepare an income statement and balance sheet for 2013.
c. Explain how differences between the book balance and the physical count of inventory could arise. Why is being able to determine whether differences exist useful to management?

Reference no: EM13933785

Questions Cloud

Compute the tension in the cable : The solid concrete cylinder 6 ft long and 4 ft in diameter is supported in a half-submerged position in fresh water by a cable which passes over a fixed pulley at A. Compute the tension T in the cable. The cylinder is waterproofed by a plastic coa..

Discuss how pvrs will affect the demand : Discuss how PVRs will affect the demand from advertisers (i.e., to place advertisements in network television programs).

Is the distribution the same as reported in the newspaper : Credit Union Loans USA TODAY reported that 21% of loans granted by credit unions were for home mortgages. At a = 0.05, is the distribution the same as reported in the newspaper?

How would you describe the process of thinking : As a parent of a young child, you are concerned about giving your child a head start. Which theory - Piaget's or Vygotsky's - do you like the best? Why? Based on your choice of theory, what type of activities/tools would you choose to make availab..

Differences between the book balance and the physical count : Explain how differences between the book balance and the physical count of inventory could arise. Why is being able to determine whether differences exist useful to management?

What is the role of congress in the policymaking process : Write one paragraph for the following question. what is the role of Congress in the policymaking process?

Patient protection and affordable care act of 2010 : Describe 2 most significant changes will bring to US healthcare landscape from Patient Protection and Affordable Care Act of 2010.

Explain (a)the origins of the professional standard : Explain (a)the origins of the professional standard of care and (b)the two key evidentiary elements of the standard as it was first developed .

Exchange rate and employment levels : Explain how monetary policy can influence an economy, including the exchange rate and employment levels.

User Account

All Pages

Differences between the book balance and the physical count

Reference no: EM13933785

Reference no: EM13933785

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT