User Account

All Pages

Prepare any correcting entries to adjust inventory

Assignment Help Accounting Basics
Reference no: EM132052585

Question - Craig Company asks you to review its December 31, 2014, inventory values and prepare the necessary adjustments to the books. The following information is given to you.

1. Craig uses the periodic method of recording inventory. A physical count reveals $248,749 of inventory on hand at December 31, 2014.

2. Not included in the physical count of inventory is $14,212 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 $13,555 on December 31. The merchandise cost $7,784, and Champy received it on January 3.

4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $16,552. 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 $9,044 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 $11,054 of inventory held by Craig on consignment from Jackel Industries.

7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $20,015 on December 31. The cost of this merchandise was $11,141, 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 $1,589 which had been sold to a customer for $2,753. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.

Required -

Determine the proper inventory balance for Craig Company at December 31, 2014.

Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed.

Reference no: EM132052585

Questions Cloud

What is the cmr for the rooms operation : What is the CMR for the rooms operation? What is the CMR for the food operation?
Prepare the journal entries for the month of august : August 18 Received $17850 in cash from customers for training services. Prepare the Journal entries for the month of August 2015
What is the contribution margin : What is the contribution margin? What is his breakeven point given that he wants to cover all of his costs?
How many rooms must be sold to breakeven : The 100 room limited service pepper inn has an ADR or 80 and variable costs per room sold of 15. Assume there is no other sales activity
Prepare any correcting entries to adjust inventory : Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed
Calculate the predetermined manufacturing overhead rate : Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours
Record the required year-end adjusting entry : Sye Chase started and operated a small family architectural firm in 2016. Record the required year-end adjusting entry to reflect the use of suppies
Five operating departments : Assume that management made the decision to use a segmented income statement that reflected Ohio's five operating departments.
Why might ron choose to keep away from active management : Ron is a limited partner, and Steve is a general partner of Total Financial Management, Why might Ron choose to keep away from active management activities

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the reasons that corporations invest in securities

Write a 700- to 1,050-word essay about investments. Discuss the reasons that corporations invest in securities

  Evaluate the potential implication to the business

Evaluate the potential implication to the business of each of the weaknesses identified

  Determining the regression analysis

Identify each of the following statements as true or false and explain why: A. A parameter is a population characteristic that is estimated by a coefficient derived from a sample of data.

  How many units should splinter purchase in april

T-Mart purchased $100,000 of merchandise in August and expects to purchase $120,000 in September. Merchandise purchases are paid as follows: 25% in the month.

  Prepare the journal entry to record the contributions

Jack L and Mathew C. would like to combine businesses to form a Partnership. Prepare the journal entry to record the contributions, which occurred on August

  Determine the amount of self-employment tax

1. Shawna earns $85,000 as a biologist for Berto Corporation. She also consults with other businesses on compliance with environmental regulations. During the current year, she earns $25,000 in consulting fees. Determine the amount of self-employm..

  What is the estimated fixed cost element of power costs

At the high level if activity in November, 7,000 machine hours were run and power costs were $18,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $9,000. Using the high-low method, what is the estim..

  What is the monthly payment

Monthly Payment for a $1,000 Loan Annual Interest Rat Length of Loan in Years 20 25 30 6.00 % $7.16 $6.44 $6.00 6.50% $7.46 $6.75 $6.32 You are applying for a $175,000.00 loan at an annual percentage rate of 6.5 % for 30 years . What is the monthl..

  What if a cahs receipt were applied to the wrong customer

What if a cahs receipt were applied to the wrong customer? Identify Internal control that would detect or prevent thid from occurring.

  Compute the cost formula for moving materials

Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low.

  Prepare a well-written memorandum to your senior manager

Prepare a well-reasoned, well-written memorandum to your senior manager addressing the appropriate issues for consideration and then make a recommendation for the best legal structure for Jim's business.

  Elect straight line cost recovery

He does not elect to expense any of the asset under S 179 or elect straight line cost recovery. He elects not to take additional first year depreciation. He sells the asset on August 25, 2010 . This is the only asset he acquires in 2009. Determine..

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