What is the dollar amount of shrinkage

Assignment Help Accounting Basics
Reference no: EM13873027

Home Hardware reported beginning inventory of 20 shovels, for a total cost of $ 100. The company had the following transactions during the month: Jan. 2 Sold 4 shovels on account at a selling price of $ 10 per unit. 16 Sold 10 shovels on account at a selling price of $ 10 per unit. 18 Bought 5 shovels on account at a cost of $ 5 per unit. 19 Sold 10 shovels on account at a selling price of $ 10 per unit. 24 Bought 10 shovels on account at a cost of $ 5 per unit. 31 Counted inventory and determined that 10 units were on hand.

Required:

1. Prepare the journal entries that would be recorded using a periodic inventory system.

2. Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed.

3. What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1, and (b) requirement 2? Enter CD (cannot determine) if you were unable to determine the dollar amount of shrinkage.

Reference no: EM13873027

Questions Cloud

Prepare the journal entries that sports r us would record : Indicate the effect (direction and amount) of each transaction on the Inventory balance of Sports R Us. Prepare the journal entries that Sports R Us would record and show any computations.
Determine how government regulations affect compensation : Determine how government regulations affect compensation
Develop effective talent management strategies to recruit : Develop effective talent management strategies to recruit and select employees
Determine the entropy change of the air : A constant-volume tank contains 5 kg of air at 100 kPa and 327°C. The air is cooled to the surroundings temperature of 27°C. Assume constant specific heats at 300 K.
What is the dollar amount of shrinkage : Prepare the journal entries that would be recorded using a periodic inventory system. Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed. What is the ..
Find the work in the process : A constant pressure piston cylinder contains 0.2 kg water as saturated vapor at 400 kPa. It is now cooled so the water occupies half the original volume. Find the work in the process.
Do you need any additional information to determine the fact : Who has the stronger arguments, the city or Houston? Why? Do you need any additional information to determine the facts?
The history of health and medicine : Power point and need about 4 to 5 slides on the history of health and medicine and how it pertains to ethics.
Temperature rises as a result of heat transfer : A cold canned drink is left in a warmer room where its temperature rises as a result of heat transfer. Is this a reversible process? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Eliminating the audit trail

Is it probable that the use of information technology will eventually eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total on the financial statements?

  Kolbys korndogs is looking at a new sausage system with an

kolbys korndogs is looking at a new sausage system with an installed cost of 924000. this cost will be depreciated

  Elimination of product c will make it possible to cut two

mr. earl pearl accountant for margie knall co. inc. has prepared the following product-line income

  On january 1 2004 st street corporation issued 100000 of

on january 1 2004 st. street corporation issued 100000 of ten-year bonds that pay 8 annually on december 31. at the

  Amount of net income or net loss

If beginning capital was $70,000, ending capital is $48,000, and the owner's withdrawals were $21,000, the amount of net income or net loss was:

  Capital asset acquisition

In its Statement of Net Assets, a government reported: Assets of $90 million, including $30 million in capital assets (net) and liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition.

  Two sets of ratios are shown in the schedule of funding

two sets of ratios are shown in the schedule of funding progress prepared for pension truest funds a the funded ratio

  Kara fashions uses straight-line depreciation for

kara fashions uses straight-line depreciation for financial statement reporting and macrs for income tax reporting.

  Matador inc sells computer monitor screens the direct labor

matador inc. sells computer monitor screens. the direct labor dl rate includes wages benefits and payroll tax. direct

  Dixon corporation is considering a public offering of

dixon corporation is considering a public offering of common stock. the firm will offer one million shares of common

  Ending balance of accounts receivable

In its first month in business, Jones, Inc. sold merchandise to customers on account for $119,800. It collected $72,000 on those sales during the first month and recorded Revenue for the period of $119,800.

  Direct and indirect method-statement of cash flows

Explain the differences between the "Direct Method" and the "Indirect Method" of presentation of the Statement of Cash Flows and how each differs for the reporting classifications.

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