101019, 1026 PMProblem 9-3Page 1 of 2httpsedugen.wil.docx

10/10/19, 10'26 PMProblem 9-3
Page 1 of
2https://edugen.wileyplus.com/edugen/shared/assignment/test/q
print.uni
Question Attempts: 0 of 3 used
Print by: Crismaldy Ventura
ACC304011VA016-1198-001: Intermediate Accounting II /
HOMEWORK - CHAPTER 09 - ACC304
*Problem 9-3
Bridgeport Company determined its ending inventory at cost
and at LCNRV at December 31, 2017, December
31, 2018, and December 31, 2019, as shown below.
Cost NRV
12/31/17 $650,200 $650,200
12/31/18 778,000 705,000
12/31/19 958,800 878,200
Prepare the journal entries required at December 31, 2018, and
at December 31, 2019, assuming that a
perpetual inventory system and the cost-of-goods-sold method
of adjusting to LCNRV is used of an allowance
account. (Credit account titles are automatically indented when
amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the

account titles and enter 0 for the
amounts.)
Date Account Titles and Explanation Debit Credit
12/31/18
12/31/19
Prepare the journal entries required at December 31, 2018, and
at December 31, 2019, assuming that a
perpetual inventory is recorded at cost and reduced to LCNRV
using an allowance account under the loss
method. (Credit account titles are automatically indented when
amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the
amounts.)
12/31/18
12/31/19
10/10/19, 10'26 PMProblem 9-3
Page 2 of
print.uni
Copyright © 2000-2019 by John Wiley & Sons, Inc. or related
companies. All rights reserved.

10/10/19, 10'23 PMProblem 8-3 (Part Level Submission)
Page 1 of
print.uni
Attempts: 0 of 3 used
*Problem 8-3 (Part Level Submission)
Some of the transactions of Bridgeport Company during August
are listed below. Bridgeport uses the periodic
inventory method.
August 10 Purchased merchandise on account, $13,000, terms
2/10, n/30.
13 Returned part of the purchase of August 10, $1,300, and
received credit on account.
15 Purchased merchandise on account, $17,800, terms 1/10,
n/60.
25 Purchased merchandise on account, $21,900, terms 2/10,
n/30.
28 Paid invoice of August 15 in full.
*(a1)
Assuming that purchases are recorded at gross amounts and that

discounts are to be recorded when taken:
Prepare general journal entries to record the transactions. (If no
entry is required, select "No entry" for
the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when
amount is entered. Do not indent manually.)
10/10/19, 10'23 PMProblem 8-3 (Part Level Submission)
Page 2 of
print.uni
*(b1)
The parts of this question must be completed in order. This part
will be available when you complete the part
above.
*(b2)
The parts of this question must be completed in order. This part
will be available when you complete the part
above.

10/10/19, 10'21 PMExercise 9-9
Page 1 of
print.uni
*Exercise 9-9
Bramble Realty Corporation purchased a tract of unimproved
land for $50,000. This land was improved and
subdivided into building lots at an additional cost of $30,000.
These building lots were all of the same size but
owing to differences in location were offered for sale at
different prices as follows.
Group No. of Lots Price per Lot
1 8 $5,700
2 15 7,600
3 17 4,560
Operating expenses for the year allocated to this project total
$17,000. Lots unsold at the year-end were as
follows.

Group 1 5 lots
Group 2 7 lots
Group 3 2 lots
At the end of the fiscal year Bramble Realty Corporation
instructs you to arrive at the net income realized on this
operation to date. (Round ratios for computational purposes to 4
decimal places, e.g. 78.7234% and
final answer to 0 decimal places, e.g. 5,845.)
Net income $
10/10/19, 10'21 PMBrief Exercise 9-8
Page 1 of
print.uni
*Brief Exercise 9-8
Swifty Company signed a long-term noncancelable purchase
commitment with a major supplier to purchase raw
materials in 2018 at a cost of $1,001,000. At December 31,

2017, the raw materials to be purchased have a
market value of $955,300. In 2018, Swifty paid $1,001,000 to
obtain the raw materials which were worth
$955,300. Prepare the entry to record the purchase. (Credit
account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is
required, select "No entry" for the
account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Page 1 of
print.uni
*Brief Exercise 9-2
Coronado Corporation has the following four items in its ending
inventory.
Item Cost
Net Realizable
Value (NRV)

Jokers $2,840 $2,982
Penguins 7,100 7,029
Riddlers 6,248 6,568
Scarecrows 4,544 5,439
Determine the following the LCNRV for each item.
Item LCNRV
Jokers $
Penguins
Riddlers
Scarecrows
(1) Determine the amount of write-down, if any, using an item-
by-item LCNRV evaluation. (If no write-down,
enter 0 for the amounts.)
Item Write-down
Jokers $
Penguins
Riddlers
Scarecrows
(2) Determine a total category LCNRV evaluation. (If no write-

down, enter 0 for the amount.)
Total category LCNRV $
Page 2 of
print.uni
Page 1 of
print.uni
*Brief Exercise 9-4
Presented below is information related to Splish Inc.’s
inventory, assuming Splish uses lower-of-LIFO cost-or-
market.
(per unit) Skis Boots Parkas

Historical cost $197.60 $110.24 $55.12
Selling price 220.48 150.80 76.70
Cost to distribute 19.76 8.32 2.60
Current replacement cost 211.12 109.20 53.04
Normal profit margin 33.28 30.16 22.10
Determine the following:
(a) The two limits to market value (i.e., the ceiling and the
floor) that should be used in the lower-of-cost-or-
market computation for skis.
Ceiling Limit $
Floor Limit $
(b) The cost amount that should be used in the lower-of-cost-or-
market comparison of boots.
The cost amount $
(c) The market amount that should be used to value parkas on
the basis of the lower-of-cost-or-market.
The market amount $

10/10/19, 10'12 PMBrief Exercise 8-4 (Part Level Submission)
Page 1 of
print.uni
*Brief Exercise 8-4 (Part Level Submission)
Concord Company uses a periodic inventory system. For April,
when the company sold 570 units, the following
information is available.
Units Unit Cost Total Cost
April 1 inventory 250 $28 $ 7,000
April 15 purchase 350 34 11,900
April 23 purchase 400 36 14,400
1,000 $33,300
*(a)
Your answer is correct.
Calculate weighted average cost per unit. (Round answer to 2
decimal places, e.g. 2.76.)

Weighted average cost per unit $
*(b)
Your answer is incorrect. Try again.
Compute the April 30 inventory and the April cost of goods sold
using the average-cost method. (Round
answers to 0 decimal places, e.g. 2,760.)
Ending inventory
$
Cost of goods sold
$
33.3
16100
17880
10/10/19, 10'15 PMExercise 9-13
Page 1 of
print.uni

*Exercise 9-13
Each of the following gross profit percentages is expressed in
terms of cost.
1. 41.00%.
2. 51.25%.
3. 68.33%.
4. 102.50%.
Indicate the gross profit percentage in terms of sales for each of
the above. (Round answers to 2 decimal
places, e.g. 78.73%.)
Gross profit
in
terms of cost
Gross profit in
terms of sales
1. 41.00% %
2. 51.25% %
3. 68.33% %
4. 102.50% %

10/10/19, 10'16 PMExercise 9-19
Page 1 of
print.uni
*Exercise 9-19
Presented below is information related to Sweet Corporation for
the current year.
Beginning inventory $ 600,400
Purchases 1,490,900
Total goods available for sale $2,091,300
Sales revenue 2,465,000
Compute the ending inventory, assuming that (a) gross profit is
42% of sales, (b) gross profit is 60% of cost,
(c) gross profit is 32% of sales, and (d) gross profit is 25% of
cost. (Round ratios for computational
purposes to 1 decimal place, e.g. 78.7% and final answers to 0
decimal places, e.g. 28,987.)
Ending Inventory

(a) Gross profit is 42% of sales $
(b) Gross profit is 60% of cost $
(c) Gross profit is 32% of sales $
(d) Gross profit is 25% of cost $
10/10/19, 10'11 PMExercise 8-12
Page 1 of
print.uni
*Exercise 8-12
Nash Company was formed on December 1, 2016. The following
information is available from Nash’s inventory
records for Product BAP.
Units Unit Cost
January 1, 2017 (beginning inventory) 642 $ 9.00
Purchases:

January 5, 2017 1,284 10.00
January 25, 2017 1,391 11.00
February 16, 2017 856 12.00
March 26, 2017 642 13.00
A physical inventory on March 31, 2017, shows 1,712 units on
hand.
Prepare schedule to compute the ending inventory at March 31,
2017, under FIFO inventory method.
NASH COMPANY
COMPUTATION OF INVENTORY FOR PRODUCT
BAP UNDER FIFO INVENTORY METHOD
March 31, 2017
$ $
$
Prepare schedule to compute the ending inventory at March 31,
2017, under LIFO inventory method.
NASH COMPANY
COMPUTATION OF INVENTORY FOR PRODUCT
BAP UNDER LIFO INVENTORY METHOD
March 31, 2017

$ $
10/10/19, 10'11 PMExercise 8-12
Page 2 of
print.uni
$
Calculate average-cost per unit. (Round answer to 2 decimal
places, e.g. 2.76.)
Weighted average-cost per unit $
Compute the ending inventory at March 31, 2017, under
Weighted-average inventory method. (Round answer
to 0 decimal places, e.g. 2,760.)
Weighted-Average
Ending Inventory at March 31, 2017 $

10/10/19, 10'11 PMExercise 8-25
Page 1 of
print.uni
*Exercise 8-25
At December 31, 2016, Stellar Corporation reported current
assets of $337,160 and current liabilities of
$202,100. The following items may have been recorded
incorrectly.
1. Goods purchased costing $19,940 were shipped f.o.b.
shipping point by a supplier on December 28. Stellar
received and recorded the invoice on December 29, 2016, but
the goods were not included in Stellar’s
physical count of inventory because they were not received until
January 4, 2017.
2. Goods purchased costing $14,960 were shipped f.o.b.
destination by a supplier on December 26. Stellar
received and recorded the invoice on December 31, but the
goods were not included in Stellar’s 2016

physical count of inventory because they were not received until
January 2, 2017.
3. Goods held on consignment from Claudia Kishi Company
were included in Stellar’s December 31, 2016,
physical count of inventory at $12,710.
4. Freight-in of $3,280 was debited to advertising expense on
December 28, 2016.
Compute the current ratio based on Stellar’s balance sheet.
(Round ratio to 2 decimal places, e.g. 2.31:1.)
The current ratio :1
Recompute the current ratio after corrections are made. (Round
ratio to 2 decimal places, e.g. 2.31:1.)
The current ratio :1
By what amount will income (before taxes) be adjusted up or
down as a result of the corrections? Assume that
goods are sold in item #4.
Adjust Income $

101019, 1026 PMProblem 9-3Page 1 of 2httpsedugen.wil.docx

Recommended

Recommended

More Related Content

Similar to 101019, 1026 PMProblem 9-3Page 1 of 2httpsedugen.wil.docx

Similar to 101019, 1026 PMProblem 9-3Page 1 of 2httpsedugen.wil.docx (20)

More from aulasnilda

More from aulasnilda (20)

Recently uploaded

Recently uploaded (20)

101019, 1026 PMProblem 9-3Page 1 of 2httpsedugen.wil.docx