please see attached questions to be answered. it is for intermediate accounting 1. unversity level

SHOW ALL WORKINGS On September 31, 2016 Loste Company lost a portion of its inventory due to a fire. Sales and purchases up to that time for the year had been $1,400,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2016) was $170,000; in the past Loste's gross profit has averaged 40% of selling price. Required a) Compute the estimated cost of inventory burned (8 marks) b) Prepare the journal entries as of December 31, 2016 to close merchandise accounts. (12 marks) Question 2 SHOW ALL WORKINGS The following data was provided by Noelta Inc. Cost Inventory, 12/31/15 Purchases Retail $375,000 $ 550,000 1,369,000 2,050,000 Purchase returns 90,000 120,000 Purchase discounts 27,000 - Gross sales (after employee discounts) Sales returns Markups - - Markdowns 145,000 - Markup cancellations 2,110,000 180,000 - 60,000 - 65,000 Markdown cancellations Freight-in Employee discounts granted Normal Loss from breakage 30,000 63,000 - - - 12,000 8,000 Required: Assuming that Noelta Inc. uses the conventional retail inventory method (LCNRV method), compute the cost of its ending inventory at December 31, 2016. (25 marks) Question 3 SHOW ALL WORKINGS Early in 2016, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction began on July 31, 2016 and was completed on November 1, 2016. In order to help finance the construction, Dobbs issued a $400,000 of 3-year, 12% note payable, issued at par on July 31, 2016, with interest payable annually on July 31. $300,000 of the proceeds of the note was paid to Kiner, Inc on July 31, 2016 and the remainder of the note was temporarily invested in short term marketable trading securities at 10% until November 1, 2016. On November 1, Dobbs made a final payment of $100,000 to Kiner, Inc. Summary of payments to Kiner, Inc. during 2016: Date Payment July 31, 2016 November 1, 2016 $300,000 100,000 In addition to the 12% note payable, the only other debt Dobbs had outstanding at December 31, 2016 was a $30,000, 8% note payable dated January 1, 2013 and due in 6 years, with interest payable annually on December 31. Required: A. Calculate the following. Round all computations to the nearest dollar. i. Interest revenue earned by Dobbs in 2016 ii. Weighted-average accumulated expenditures (3 marks) (4 marks) iii. Avoidable interest iv. Actual interest v. Total interest cost capitalized during 2016. (3 marks) (7 marks) (3 marks) B. Prepare the December 31, 2016 journal entries needed on the books of Dobbs Corporation. (10 marks)