State the value of the stock destroyed by fire

Assignment Help Accounting Basics
Reference no: EM131537506

Question: A trader dealing in a standard line of goods which he regularly sold at 25% above cost price, discovered on the morning of 17th March, 1962-a Monday-that during the week-end all his stock had been destroyed by fire. His stock was fully covered by insurance, but no records were immediately available from which he could calculate how much he should claim from the insurance company. His account books were, however, undamaged and from them he was able to obtain the following figures:

                                                                                             £

Stock on Hand 1st January, 1962 at cost price                            6,000

Purchases from 1st January to 14th March, 1962                         14,000

Sales from 1st January to 14th March, 1962                                18,000

State the value of the stock destroyed by fire, showing your calculations.

Reference no: EM131537506

Questions Cloud

What was caterpillar book debt-to-value ratio : What was Caterpillar's book debt-to-value ratio? What was its market debt-to-value ratio?
Briefly discuss profile of the company and its product lines : FIN 6515 Project Requirements. Use at least two technical indicators covered in class to determine if the stock will move up or down
Purchasing power parity : Summarize the attached paper entitled "Purchasing Power Parity (PPP) Debate" and in a maximum of 3 pages.
What is your advice regarding this influential force : Does this force affect Christians positively or negatively? What is your advice regarding this influential force?
State the value of the stock destroyed by fire : A trader dealing in a standard line of goods which he regularly sold at 25% above cost price, discovered on the morning of 17th March, 1962.
Explain recommendations for preventing spills or releases : Provide recommendations for preventing spills or releases. Discuss response actions required in the event of a spill or release.
The corporate culture of enron contribute to its bankruptcy : What role did the company's Chief Financial Officer play in creating the problems that led to Enron's financial problems?
Explain the role of the safety professional in each of steps : Discuss the role of the safety professional in each of these steps. Provide examples in your responses. Analyze one of the hazards for possible outcomes.
Create provision in their accounts against the given debts : At September 30th, 1961, the directors of XY Ltd. created a provision in their accounts against the following debts which they consider to be of doubtful.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the missing amounts for each of the following

calculate the missing amounts for each of the following firms do not round your intermediate calculations. negative

  On december 31 2004 international refining company

on december 31 2004 international refining company purchased machinery having a cash selling price of 85933.75. the

   Company adopted the dollar value LIFO retail method

1. On January 1, 2013, the Brunswick Hat Company adopted the dollar value LIFO retail method. The following data are available for 2013:

  De anza manufacturing has just hired a new controller diana

de anza manufacturing has just hired a new controller diana deanza. during her first week on the job diana was asked to

  Explain how are costs tied to staffing

Explain How are costs tied to staffing? What is the difference between the annualized method and the scheduled-position method? Why annualize staffing?

  Overhead for the year was overapplied

Actual manufacturing overhead for the year amounted to $105,000 and the actual direct labor-hours were 4,000. Overhead for the year was overapplied (+) or underapplied (-) by how much?

  It took a contractor 1285 hours to manufacture their first

it took a contractor 1285 hours to manufacture their first unit of an item. if the contractor expects to achieve a 92

  Rational of recognising costs

What are the rational of recognising costs as expenses at the time of project sale? Which are the accounting factors that sometimes keep reported operating results from reflecting the change in the value of a company?

  Price of beef related to other factors

1. Price of beef. How is the price of beef related to other factors? The data in the following table give information on the price of beef (PBE) and the possible explanatory variables: consumption of beef per capita (CBE), retail food price index (..

  Identifying the net asset classification as appropriate

Prepare the journal entries necessary to record these transactions, identifying the net asset classification as appropriate. Show which fund is used to record each transaction.

  Documents the audit and-or data analysis processes

Using your IDEA audit software and workbook, walk through and complete the entire process described in Section 4, related to the analysis of inventory. Create a document in MS Word that briefly documents the audit and/or data analysis processes th..

  Journal entries to account for fair value changes during

At December 31, 2012, the Bee investment had a fair value of $3,700,000, and Stewart calculated that $140,000 of the difference between fair value and amortized cost was a credit loss and $160,000 was a noncredit loss.

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!

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