The following information was derived from the 2010 accounting records of Perez

The following information was derived from the 2010

This preview shows page 29 - 32 out of 51 pages.

136.The following information was derived from the 2010 accounting records of Perez Co.:Perez 's GoodsPerez 's Central WarehouseHeld by ConsigneesBeginning inventory$130,000$ 14,000Purchases575,00070,000Freight-in10,000Transportation to consignees5,000Freight-out30,0008,000Ending inventory145,00020,0008 - 29
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Test Bank for Intermediate Accounting, Thirteenth EditionPerez's 2010 cost of sales wasa.$570,000.b.$600,000.c.$634,000.d.$639,000.137.Dole Corp.'s accounts payable at December 31, 2010, totaled $800,000 before anynecessary year-end adjustments relating to the following transactions:On December 27, 2010, Dole wrote and recorded checks to creditors totaling$350,000 causing an overdraft of $100,000 in Dole's bank account at December 31,2010. The checks were mailed out on January 10, 2011.On December 28, 2010, Dole purchased and received goods for $150,000, terms2/10, n/30. Dole records purchases and accounts payable at net amounts. The invoicewas recorded and paid January 3, 2011.Goods shipped f.o.b. destination on December 20, 2010 from a vendor to Dole werereceived January 2, 2011. The invoice cost was $65,000.At December 31, 2010, what amount should Dole report as total accounts payable?138.The balance in Moon Co.'s accounts payable account at December 31, 2010 was$700,000 before any necessary year-end adjustments relating to the following:Goods were in transit to Moon from a vendor on December 31, 2010. The invoice costwas $40,000. The goods were shipped f.o.b. shipping point on December 29, 2010and were received on January 4, 2011.Goods shipped f.o.b. destination on December 21, 2010 from a vendor to Moon werereceived on January 6, 2011. The invoice cost was $25,000.On December 27, 2010, Moon wrote and recorded checks to creditors totaling$30,000 that were mailed on January 10, 2011.In Moon's December 31, 2010 balance sheet, the accounts payable should be139.Kerr Co.'s accounts payable balance at December 31, 2010 was $1,500,000 beforeconsidering the following transactions:Goods were in transit from a vendor to Kerr on December 31, 2010. The invoice pricewas $70,000, and the goods were shipped f.o.b. shipping point on December 29,2010. The goods were received on January 4, 2011.Goods shipped to Kerr, f.o.b. shipping point on December 20, 2010, from a vendorwere lost in transit. The invoice price was $50,000. On January 5, 2011, Kerr filed a$50,000 claim against the common carrier.8 - 30
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Valuation of Inventories: A Cost-Basis ApproachIn its December 31, 2010 balance sheet, Kerr should report accounts payable of
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