1 answer

Headland Company lost most of its inventory in a fire in December just before the year-end...

Question:

Headland Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The

Headland Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following Beginning inventory Purchases for the year Purchase returns $166,700 426,700 27,000 Sales revenue Sales returns Rate of gross profit on net sales $667,200 40 % Merchandise with a selling price of $23,100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,900 had a net realizable value of $5,800 Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss

Answers

Cost of goods sold = (667200-25200) *(1-0.4) = $385200

Cost of undamaged goods = 23100*(1-0.4) = $13860

Amount of loss = Beginning inventory +Net purchase - Cost of goods sold - undamaged goods - realizable value of damaged goods

= 166700 +(426700-27000) - 385200 - 13860 - 5800

= $161, 540

.

Similar Solved Questions

1 answer
PID Controller 1) Consider the following block diagram R(s)+ C(o) Use Ultimate sensitivity to tune the...
PID Controller 1) Consider the following block diagram R(s)+ C(o) Use Ultimate sensitivity to tune the PID-controller gains. Po= T,= 2) Consider the following system, use Ziegler-Nichols, quarter decay tuning to design a PID con- troller G(o) 16+I)...
1 answer
Budgets are the quantitative expression of​ management's plans. True False
Budgets are the quantitative expression of​ management's plans. True False...
1 answer
1: Find the Thevenin equivalent circuit that the load (R) sees for the following circuit and...
1: Find the Thevenin equivalent circuit that the load (R) sees for the following circuit and determine the value of Ru for maximum power transfer. 10 V...
1 answer
Even when a computer software system is used for management of the practice’s finances, discuss why...
Even when a computer software system is used for management of the practice’s finances, discuss why following the bookkeeping guidelines for a manual system still has merit. Identify precautions for accepting the types of payments: cash, check, credit card, and debit card.   ...
1 answer
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of...
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31 a. Unrecorded depreciation on the trucks at the end of the year is $7.407. b. The total amount of accrued interest expense at year end is $8.000. c. The cost of unused office supplie...
1 answer
Swanton Industries is expected to pay a dividend of $10 per year for 10 years and...
Swanton Industries is expected to pay a dividend of $10 per year for 10 years and then increase the dividend to $15 per share for every year thereafter. The required rate of return on this stock is 20 percent. What is the estimated stock price for Swanton?...
1 answer
I need help cominmg up with An Experience That Has Changed My Life and I can think of any
i need help cominmg up with An Experience That Has Changed My Life and I can think of any. I want a topic that will make a very good college essay....
1 answer
An air-filled capacitor consists of two parallel plates, each with an area of 7.60 cm2, separated...
An air-filled capacitor consists of two parallel plates, each with an area of 7.60 cm2, separated by a distance of 1.70 mm. A 25.0-V potential difference is applied to these plates. (a) Calculate the electric field between the plates. kV/m (b) Calculate the surface charge density. nC/m2 (c) Calculat...
1 answer
9) 30 gal-? ft3
9) 30 gal-? ft3...
1 answer
A nurse recognizing that recognizes that adverse event requiring a root cause analysis is: a. A...
A nurse recognizing that recognizes that adverse event requiring a root cause analysis is: a. A near miss error that almost happened b. Harm, injury or a complication that occurred to a patient c. An injury that is caused by disease A disaster that caused negative consequences to a hospital 9....
1 answer
Identify and describe key values specific to Thai culture. Use evidence to explain how the Thai...
Identify and describe key values specific to Thai culture. Use evidence to explain how the Thai cultural values you identified influence the interpretation of tourism impacts in Koh Samui Island. Make an argument about how different cultural values in the United Sates may lead to different interpret...
1 answer
Adjusting Entries and Errors At the end of August, the first month of operations, the following...
Adjusting Entries and Errors At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: Net income for August $167,300 Total assets at August 31 917,000 Total liabilities at August 31 303,000 Total owner...
1 answer
Beryl's food Tea currently rents a bonding machine for $52,000 per year, including all maintenance expenses....
Beryl's food Tea currently rents a bonding machine for $52,000 per year, including all maintenance expenses. It is considering purchasing a machine instead and is comparing two options: a. Purchase the machine it is currently renting for $165.000. This machine will require $23.000 per year in on...
1 answer
Given the cell reaction: 2Cl–(aq) + Fe3+(aq) → Cl2(aq) + Fe2+(aq): (unbalanced) a) As written, is...
Given the cell reaction: 2Cl–(aq) + Fe3+(aq) → Cl2(aq) + Fe2+(aq): (unbalanced) a) As written, is the cell galvanic or electrolytic? b) Calculate ε°cell. c) Calculate ΔG°....
1 answer
This year, SIgma Inc. generated $633,750 Income from Its routine business operations. In addition, the corporation...
This year, SIgma Inc. generated $633,750 Income from Its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. InitiaL Acc Basis 11,5 88,488 31,see 171,758 Depr.Sale Price $ 69 , see 168,60e $ Marketable securities Produc...
1 answer
Design an electronic lock system. This system has 2 inputs: A and B. This system will...
Design an electronic lock system. This system has 2 inputs: A and B. This system will be unlocked when the sequence BBA is pressed. State diagram of this electronic lock system is shown below. - Draw a circuit diagram and find the maximum clock frequency of your circuit. Check if this circuit violat...