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Darina [25.2K]
3 years ago
7

On August 31, a hurricane destroyed a retail location of Carla Vista's Clothier including the entire inventory on hand at the lo

cation. The inventory on hand as of June 30 totaled $1895000. Since June 30 until the time of the hurricane, the company made purchases of $495000 and had sales of $1480000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed
Business
1 answer:
IrinaK [193]3 years ago
5 0

Answer: $1,502,000

Explanation:

The destroyed stock is the closing stock on August 31.

Cost of Goods sold = Opening stock + Purchases - Closing stock

Closing stock = Opening stock + Purchases - Cost of Goods sold

Opening stock = $1,895,000

Purchases = $495,000

Gross profit is 40% of sales so Cost of Goods sold must be 60%;

= 60% * 1,480,000

= $888,000

Closing stock = 1,895,000 + 495,000 - 888,000

= $1,502,000

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3 years ago
Prepare journal entries to record the issuance of the bonds and the retirement of bonds. (Show computations and round to the n..
Vikentia [17]

Answer:

issuance entry:

cash                   2,850,000 debit

discount on BP     150,000 debit

         bonds payable           3,000,000 credit

--to record issuance--

bonds payable      600,000 debit

loss on redemption 30,000 debit

interest expense     56,250 debit

                 cash                     662,250 credit

                 discount on BP      24,000 credit

--to record redemption ---

Explanation:

proceeds at issuance : $3,000,000 x 95/100 = 2,850,000

the difference will be the discount.

Now, when the bonds are retired we have to check the weight:

3,000,000 --> 120,000

  600,000 --> 120,000/3,000,000 x 600,000 = 24,000

<u><em>cash outlay</em></u> 600,000 x 101/100 = 606,000

loss redemption

we pay 606,000

for bonds which are worth: 600,000 - 24,000 = 576,000

The loss is the difference.

then, we calcualte the accrued interest:

principal x rate x time

3,000,000 x 7.5% x 3/12 = 56,250‬

this will be an interest expense

as well as an additional cash outlay

5 0
3 years ago
Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500.
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Answer:

Sampson Company

Dr Accounts Receivable -Batson Co.45,080

Cr Sales 45,080

Dr Cost of Merchandise Sold38,500

Cr Merchandise Inventory38,500

Dr Cash 45,080

Cr Accounts Receivable-Batson Co.45,080

Batson Company

Dr Merchandise Inventory45,080

Cr Accounts Payable - Sampson Co.45,080

Dr Accounts Payable -Sampson Co.45,080

Cr Cash45,080

Explanation:

Preparation of the Journal entries for both Sampson and Batson Companies would record

Based on the information given we were told that Sampson Company sold merchandise to Batson Company At the amount of $46,000 with 2/15 term while the merchandise was sold at the amount of $38,500 and since we are Assuming that both of them uses a perpetual inventory system this means the transaction will be recorded as:

Journal Entries for Sampson Company

Dr Accounts Receivable -Batson Co.45,080

Cr Sales 45,080

(2%*46,000=920)

(45,000-920=45,080)

Dr Cost of Merchandise Sold38,500

Cr Merchandise Inventory38,500

Dr Cash 45,080

Cr Accounts Receivable-Batson Co.45,080

Journal Entries for Batson Company

Dr Merchandise Inventory45,080

Cr Accounts Payable - Sampson Co.45,080

(2%*46,000=920)

(45,000-920=45,080)

Dr Accounts Payable -Sampson Co.45,080

Cr Cash45,080

(2%*46,000=920)

(45,000-920=45,080)

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3 years ago
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Answer:

Champion

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Based on the information provided within the question the specialized role being mentioned is a certified Six Sigma Champion. Like mentioned in the question this is a professional who has a vast number of years of experience and is very proficient in understanding and applying Six Sigma Methodology, as well as having the authority and resources need to do so.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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3 years ago
Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a
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Answer: A. Identify issues.

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In identifying issues one must be clear what the problem is and plan on how to solve them, analyzing the problem is important when identifying issues. This help you to be about the situation when there is problem.

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