Prepare journal entries to correct the error

Assignment Help Financial Accounting
Reference no: EM132791232

The company provided the following inventory data for 20X1:

Jan 1 Beginning inventory 1,000 units @ $4.00
May 18 Cash Purchase 2,000 units @ $4.50
Oct 5 Credit Purchase &..;@$4.80
Nov 24 Credit Sales 3,000 units
Dec 1 Credit Purchase 1,000 units @$5.00

The company's reporting date is December 31.

Required :

Problem (1) Assume that the company uses perpetual inventory system and weighted average method, prepare journal entries on Oct 5 and Nov 24 (Please do not prepare entries to recognize sales revenue).

Problem (2) Assume that the company uses periodic inventory system and weighted average method, prepare journal entries on Dec 1 and Dec 31.

Problem (3) Assume that the company uses periodic inventory system and FIFO, prepare journal entries on May 18 and Dec 31.

Problem (4) In 20X2, the company found an overstatement of $2,000 for 20X1's ending inventory. The income tax rate is 30%. Prepare journal entries to correct this error.

Reference no: EM132791232

Questions Cloud

Create a selective summary of empirical literature : Describe the program evaluation theory base connected to the proposed methodology and Create a selective summary of empirical literature
Identify the greatest significance of the ruler : Choose a single leader who is highlighted in the reading assignment for this unit. Introduce your chosen figure, and provide descriptions of the following.
How much of total labor cost should be charged to overhead : Total regular hours worked, split evenly among the three shifts 27,000. How much of the total labor cost should be charged to overhead
Measure the performance of the new product or service : Recommend some metrics that could be used to measure the performance of the new product or service.
Prepare journal entries to correct the error : In 20X2, the company found an overstatement of $2,000 for 20X1's ending inventory. The income tax rate is 30%. Prepare journal entries to correct this error.
Controlling the immediate conflict environment : How have, or might, you depersonalize in conflict situations, or do you feel that doing so would be unwise or impossible?
What was benjamin franklins argument about the population : What was Benjamin Franklin's argument about the population of the English colonies in 1755? What was his position on slavery and race compared to Jefferson's?
What is the share capital available for subscription : Treasury preference shares (2,500 shares at cost), 300,000; Retained Earnings, 1,000,000; What is the share capital available for subscription
Prepare journal entries to apply lower-of-cost-or-nrv : Prepare journal entries to apply lower-of-cost-or-NRV valuation at the end of 20X1 and 20X2 (using the indirect (allowance) method).

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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