Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gatineau Bank is considering giving Marigold Corporation a short-term bank loan. Before doing so, I decides that further discussion with Maripold's accountant may be desirable.

image text in transcribed
image text in transcribed
Gatineau Bank is considering giving Marigold Corporation a short-term bank loan. Before doing so, I decides that further discussion with Maripold's accountant may be desirable. One wrea of particular concern is the inventory account, which according to a recent physical inventory count has a balance of $274,000 at December 31. This count agreed with the accounting records Discussions with the accountant reveal the following 1. Marigold sold goods costing $32,900 torindia-based Moghe Company FOB destination, on December 28. Marigold does not expect the goods to arrive in India until January 12. The goods were not included in the physical inventory count, because they were not in the warehouse 2 The physical inventory count did not include goods costing $102,900 that a supplier shipped to Marigold, FOB shipping point. on December 27 and that were still in transit at year end. Marigold received goods costing $29,600 on January 2. The goods were shipped Foe shipping point on December 26 by Cellar Corp. The goods were not included in the physical inventory count. Marigold sold goods costing $53,100 to United Kingdom-based Sterling of Britain Ltd, FOB shipping point, on December 30 Sterling received the goods on January 8. They were not included in Marigold's physical inventory count. 5. On December 31, Schiller Corporation had $30,500 of goods held on consignment for Marigold. The goods were not included in the physical inventory count 6. Included in the physical inventory count were $15.800 of parts for outdated products that the company had not been able to sell. It is unlikely that these obsolete parts will have any other use. (a) Whats Annim inn Examity Proctoring est comcartiendo tu pantas Desdema Du haben im Inn Determine the correct inventory amount on December 31. Record the tractions in the order presented in the problemom mount reduces the account balance then enter with negative sin preceding the number 45 or parentheses.451.thetronas EFFECT ON INVENTORY.enter for the amount) Ending Inventory physical count $ 1 Add to inventory 2 3 4. 5. 6. Correct inventory $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethical Obligations and Decision Making in Accounting Text and Cases

Authors: Steven M. Mintz, Roselyn E. Morris

5th edition

1259969460, 73403997, 1260480852, 978-1259969461

Students also viewed these Accounting questions