A sale trader operates his business from a warehouse ,which has been damage by a fire ,which occurred at the end of the financial year. After the fire ,the remaining inventory that is undamaged amount to Gh 2,000(Cost). The accountant establishes the following information : (a). Inventory at the beginning of the year was Gh 16,000 (b). Purchases during the year were Gh115,000 (c). Sales during the year were GH 140,000 (d).The trader sells his goods at a mark-up of 25% of cost . How much was the gross profit ?

A sale trader operates his business from a warehouse ,which has been damage by a fire ,which occurred at the end of the financial year. After the fire ,the remaining inventory that is undamaged amount to Gh 2,000(Cost). The accountant establishes the following information : (a). Inventory at the beginning of the year was Gh 16,000 (b). Purchases during the year were Gh115,000 (c). Sales during the year were GH 140,000 (d).The trader sells his goods at a mark-up of 25% of cost . How much was the gross profit ?

Name: A sale trader operates his business from a warehouse ,which has been d
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: A sale trader operates his business from a warehouse ,which has been damage by a fire ,which occurred at the end of the financial year. After the fire ,the remaining inventory that is undamaged amount to Gh 2,000(Cost). The accountant establishes the

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

See similar textbooks

Similar questions

A sole trader operates his business from a warehouse which has been damaged by fire which occurred at the end of financial year. After the fire the remaining inventory that is undamaged amounts to GHS 2000 (cost). the account established the following information; Inventoey at the beinning of the year was GHS16,000. purchases during the year were GHS115,000 sales during he year was GHS140000. the trader sells his good at a mark up of 25% of cost. How much was the gross profit? Subscriptions due but unpaid on 31 december were GHS800, what amount would be shown for subscription in the income and expenditure account for the year ended 31 december? When the trial balance extracted from a books of Karman enterprise at the year end fail to balance the difference was placed in a suspense account. Identify the amount that would have been placed in suspense as a result of each of the following errors: GHS2400 prepaid insurance has been brought forward from the previous year as a credit balance.
A sole trader operates his business from a warehouse which has been damaged by fire which occurred at the end of financial year. After the fire the remaining inventory that is undamaged amounts to GHS 2000 (cost). the account established the following information; Inventoey at the beinning of the year was GHS16,000. purchases during the year were GHS115,000 sales during he year was GHS140000. the trader sells his good at a mark up of 25% of cost. How much was the gross profit?
The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $53,000, Sales Returns and Allowances $1,000, Purchases $34,000, Freight-In $1,300, and Purchase Returns and Allowances $1,500.Determine the merchandise lost by fire, assuming: A beginning inventory of $20,000 and a gross profit rate of 32% on net sales. Estimated cost of merchandise lost $enter the Estimated cost of merchandise lost in dollars
The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $53,000, Sales Returns and Allowances $1,000, Purchases $34,000, Freight-In $1,300, and Purchase Returns and Allowances $1,500.Determine the merchandise lost by fire, assuming: A beginning inventory of $20,000 and a gross profit rate of 32% on net sales. Estimated cost of merchandise lost $enter the Estimated cost of merchandise lost in dollars A beginning inventory of $31,000 and a gross profit rate of 41% on net sales. Estimated cost of merchandise lost $enter the Estimated cost of merchandise lost in dollars
Coronado Inc. took a physical inventory at the end of the year and determined that $790000 of goods were on hand. In addition, Coronado, Inc. determined that $62500 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $87000 of goods out on consignment. What amount should Coronado report as inventory at the end of the year? O $790000. O $939500. O $867000. $877000.
Bell Inc. took a physical inventory at the end of the year and determined that $780k of goods were on hand. In addition, Bell Inc., determined that $60k of goods that were in transit that were shipped F.O.B. shipping point were actually received two days after the inventory count and that the company had $90k of goods out on consignment. What amount should Bell report as inventory at the end of the year? a.) 780k b.) 860k c.) 870k d.) 930k
Crane Inc. took a physical inventory at the end of the year and determined that $787k of goods were on hand. In addition, Crane Inc. determined that $60,500 of goods that were in transit that were shipped F.0.B. shipping point were actually received two days after the inventory count and that the company had $85,500 of goods out on consignment. What amount should Crane report as inventory at the end of the year? $872,500. $862,500. $787k. $933k.
Butter Company took a physical inventory at the end of the year and determined that $190,000 of goods were on hand. In addition, the entity determined that $24,000 of goods purchased were in transit shipped FOB destination. The goods were actually received three days after the inventory count. The entity sold $10,000 worth of inventory FOB destination. Such inventory is in transit at year-end. What amount should be reported as inventory at year-end? Select one: a. $214,000 b. $190,000 c. $200,000 d. $224,000
Citizens Inc. took a physical inventory at the end of the year and determined that $650,000 of goods were on hand. In addition, Citizen Inc. determined that $50,000 of goods that were in transit that were shipped f.o.b. shipping were actually received two days after the inventory count and that the company had $75,000 of goods out on consignment. What amount should Citizen report as inventory at the end of the year?
Brandy Company took a physical inventory at the end of the year and determined that P2,600,000 of goods were on hand. In addition, the entity determined that P200,000 of goods purchased in transit shipped FOB shipping point were actually received two days after the physical count and that the entity had P300,000 of goods out on consignment. What amount should be reported as inventory at a year-end
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year.
17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on onsignment. What amount should Bell report as inventory at the end of the year? a. $780,000. b. $840,000. c. $870,000. d. $930,000.