Textbook Notes (368,432)
Canada (161,877)
Accounting (533)
ACC 414 (22)
Chapter

Problem 8-3 and 8-10

4 Pages
65 Views
Unlock Document

Department
Accounting
Course
ACC 414
Professor
Donna Zathy
Semester
Fall

Description
PROBLEM 83Zoe LimitedSchedule of AdjustmentsDecember 31 2010Accounts InventoryPayableNet SalesInitial amounts 172000013000008550000Adjustments1NONENONE5700025100051000NONE338000NONENONE438000NONE48000521000NONENONE627000NONENONE7NONE56000NONE8 3500 7000 NONE Total adjustments 178500 114000105000Adjusted amounts1898500141400084450001The 37000 of tools on the loading dock was properly included in the physical count The sale should not be recorded until the goods are picked up by the common carrier Therefore no adjustment is made to inventory but sales must be reduced by the 57000 billing price2The 51000 of goods in transit from a vendor to Zoe was shipped fob shipping point on 122910 Title passes to the buyer as soon as goods are delivered to the common carrier when sold fob shipping point Therefore these goods are properly includable in Zoes inventory and accounts payable at 123110 Both inventory and accounts payable must be increased by 510003The work in process inventory sent to an outside processor is Kirks property and should be included in ending inventory Since this inventory was not in the plant at the time of the physical count the inventory column must be increased by 380004The tools costing 38000 were recorded as sales 48000 in 2010 However these items were returned by customers on December 31 so 2010 net sales should be reduced by the 48000 return Also 40000 has to be added to the inventory column since these goods were not included in the physical count5The 21000 of Kirks tools shipped to a customer fob destination are still owned by Kirk while in transit because title does not pass on these goods until they are received by the buyer Therefore 21000 must be
More Less

Related notes for ACC 414

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit