User Account

All Pages

Compute the balance in the inventory control

Assignment Help Financial Accounting
Reference no: EM132419638

Problem:

How to register the following transactions

STAR-TRACK sells satellite tracking systems for receiving television broadcasts from communications satellites in space. At December 31, 2018, the company's inventory amounted to $44,000.

During the first week in January 2019, STAR-TRACK made only one purchase and one sale. These transactions were as follows:

Jan. 3 Sold a tracking system to Mystery Mountain Resort for $20,000 cash. The system consisted of seven different devices, which had a total cost to STAR-TRACK of $11,200. Jan. 7 Purchased two Model 400 and four Model 800 satellite dishes from Yamaha Corp. The total cost of this purchase amounted to $10,000; terms 2% discount and 30 days credit account.

STAR-TRACK records purchases of merchandise at net cost. The company has full-time accounting personnel and uses a manual accounting system.

Required:

Question 1: Prepare journal entries to record these transactions, assuming that STAR-TRACK uses a perpetual inventory system.

Question 2: Compute the balance in the Inventory control account at January 7.

Question 3: Prepare journal entries to record the two transactions, assuming that STAR-

Question 4: TRACK uses a periodic inventory system.

Question 5: Compute the cost of goods sold for the first week of January, assuming use of the periodic system. As the amount of ending inventory, use your answer to question 2. Please Show all work, formulas, and assumptions when answering the question in the space provided.

Reference no: EM132419638

Questions Cloud

Why do theories matter to correctional policy : You will post a thread of 400 words or more and demonstrate course-related knowledge. Two additional sources beyond the course material.
How would you begin to go about the monumental task : What if you could eliminate sources of economic stress in this country? How would you begin to go about this monumental task? Will it ever be possible.
Transactions related to the common stock of lifepath fitness : Record all the transactions related to the common stock of lifepath fitness during the years 2016 and 2017 (2) indicate how many shares are issued
Discuss four reasons the public calls the police : What are the four citizen expectations, as proposed by John C. Meyer? Discuss four reasons the public calls the police in situations not involving a crime.
Compute the balance in the inventory control : STAR-TRACK sells satellite tracking systems for receiving television broadcasts from communications satellites in space. At December 31, 2018
Companies can lump or split functional activities : Reviewing the different ways companies can lump or split functional activities inside or outside their current structure do some research on examples
How the interagency approach is employed well or badly : Pay close attention to leadership decisions-poor or wise-and how the interagency approach is employed well or badly. Think critically about how strong.
Total dollar return to investors-return on equity : What impact would the new capital structure have on the firm's profit, total dollar return to investors, and return on equity?
Evaluate the public opinion of criminal justice : For the assignment you will evaluate public opinion of criminal justice sentencing and rehabilitation for your selected topic (deterrence and incapacitation).

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the operating income

Simple Manufacturing is conducting an analysis during June 2015 to determine how to increase the sales next month during July 2015. Simple Manufacturing only produces one product that sells for $1,200. Determine the operating income (net income)?

  What type of working capital restructuring can the firm do

Calculate the firm's total operating cycle for 2005 and 2006 - what type of working capital restructuring can the firm do to turn around its performance?

  Evaluate the exponentially smoothed forecast of calls

Evaluate the exponentially smoothed forecast of calls for each week. Suppose an initial forecast of 50 calls in the first week and use smoothing constant for forecasts=0.1 evaluate is the forecast for the 25th week?

  Greeting card industry position and formulating planany

greeting card industry position and formulating planany strategic decision must be evaluated with careful consideration

  Used the installment method for tax purposes

If Silver Appliance Company had used the installment method for tax purposes in the years 2006–2010, how different would its tax payments have been in each of those years? What would the year-end balance in deferred taxes have been in each of those y..

  Determine the cost of producing their product

On January 31, the managers of Integra, Inc., seek to determine the cost of producing their product during January for product pricing and control purposes. The company can easily determine the costs of direct materials and direct labor used in Janua..

  Case study analysiswhat are the four criteria used to

case study analysis.what are the four criteria used to determine the amount and timing of revenue reported in the

  Medical expenses during the year

Bob and Cindy Smith paid the following medical expenses during the year (all in excess of reimbursement). Hospital and doctor bills: $800 Medicine and drugs: $700 Hospitalization insurance premiums: $6,000 Medicine and drugs (for dependent mother, ag..

  What is the present value of those revenues

We are investing in a maintenance project that will increase annual revenues by $10,000 over ten years. What is the present value of those revenues, if the project is financed at 7% interest, compounded annually? What will the future worth of those r..

  Auditors are performing review of client financial statement

Which of the following is not typically performed when the auditors are performing a review of client financial statements? Analytical procedures applied to financial data. Inquiries about significant subsequent events. Confirmation of accounts recei..

  Compute the gain recognized by smeder company relating

All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes. Compute the gain recognized by Smeder Company relating to the equipment for 2010.

  Prepare the journal entry to record the issuance

Prepare the journal entry to record the issuance of the 8 percent mortgage January 1, 2017. Prepare journal entry to record retirement of the 7 percent.

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