PROBLEM P3-1) Second-Hand Music made a Consignment Agreement with On-line Shopping Company to sell its music instruments on On-line Shopping website. The Consignment contract will be renewed every year. From their arrangement, on 1 April 2018, Second Hand Music shipped the first lot of its merchandises to On-line Shopping, i.e. 20 guitars, 2 pianos, and 2 saxophones. The Cost per guitar, per piano, and per saxophone is $2,500, 315,000, and 122,000, relatively The agreement within the contract other than the consigned stocks is: 1) The retail price per guitar, per piano, and per saxophone is a 5,000, 32,000, and 45,000 2) On-line Shopping will get 10% of retail price for its commission 3) On-line Shopping can reimburse the direct costs related to consignment sale 4) The unsold stocks left over the expiration of the contract can be returned to Second Hand Music without charge. On 2 May 2018, Second Hand Music received an Account Sale from On-line Shopping: ACCOUNT SALES On-line Shopping Bangkok, Thailand No. 15678 May 2, 2018 Amount 254,000 40,000 32,000 Sales for account of Second Hand Music Account sales of Music Instrument Date Explanation Apr. 1, 18 units Consigned on hand 0 units Apr. 1 Consigned units received:- 20 guitars@5,000 2 pianos@832,000 2 saxophones@45,000 Apr. 1-30 Sales 8 guitars@85,000 Sales 1 piano@e32,000 Expenses incurred: Freight-out Packaging Advertising Commission (10%72,000) Net amount due Remittance enclosed Apr. 30 Amount due to Second Hand Music Ending Balances of consigned units:- 12 guitars@5,000 1 piano@32,000 2 saxophones@45,000 360 100 400 7,200 (8,060) 63,940 (60,000) 3,940 Additional information:- 1) 10 April 2018 Second Hand Music received a bill from Thai Logistic Ltd. for its transportation service of 1,800. 2) 1 April 2018 Second Hand Music paid cash for consigned goods packages of 8500 3) 12 April 2018 Second Hand Music received a bill from Prompt Pay Insurance for its service with a charge of 200 which already paid on the same day. 4) 30 April 2018 Second Hand Music shipped 3 guitars to On-line Shopping and had paid cash of $300 and 8120 for its transportation and packaging costs, relatively. Required a) Make the journal entries for Consignor and Consignee, if both companies use Perpetual Inventory System and set separate accounts for consignment. b) Present related items to consignment on Income Statements of Consignor and Consignee for the month of April. P3-2) Yuu Ltd. agreed to have Eleven Corp. sell its merchandise under the consignment contract. Eleven Corp. will get a 10% commission from sale and can reimburse any expenses directly to the consigned goods. 2018: Yuu Ltd.'s transactions June 1 Yuu Ltd. sends goods to Eleven Corp. costing $50,000 and had made cash payment of $1,000 for packing. 30 Yuu Ltd. had received a bill of $2,500 for consigned goods' freight and paid for the bill, already. Dec. 30 Yuu Ltd. received an Account Sales from Eleven Corp. ACCOUNT SALES Eleven Corp. Bangkok, Thailand No. 100-001 December 27, 2018 Sales for account of Yuu Ltd. Account sales of Office supplies Date Explanation Jan. 1, 18 units Consigned on hand 0 units June, 2 Consigned units received:- 68,750 2,500 dozen of Office supplies@ $27.50 Jun.-Dec. Sales 2,000 dozen of Office suppliese $27.50 55,000 Expenses incurred: Freight-out and cartage $2,000 Insurance 300 Warehouse rent Commission (10%55,000) 5,500 (8,300) Net amount due 46,700 Remittance endlosed (46,700) Amount 500 Dec. 30 Amount due to Second Hand Music Ending Balances of consigned units:- 500 dozen @ $27.50 2018: Eleven Corp.'s transactions June 2 Eleven Corp. received the goods from Yuu Ltd. and having a sale price of $27.50 per dozen 10 Eleven Corp. paid $300 for consigned goods' insurance. Eleven Corp. paid $500 for warehouse rent. June - December Eleven Corp. had sold of consigned goods for $55,000 cash. Eleven Corp. paid $2,000 cash for freight and cartage of consigned goods. Dec. 27 Eleven Corp. sent an Account Sales to Yuu Ltd. Required a) Make the journal entries for Consignor and Consignee, if both companies use Periodic Inventory System and set separate accounts for consignment. b) Present related items to consignment on Financial Statements of Consignor and Consignee c) If a physical counting of inventories report at Yuu's warehouse on 30 December 2018 shows the total costs of $285,000, how will Yuu present its inventories and costs on the Financial Position Statement? P3-3) Ban Phai Women's Cooperative consigned 1,000 hand-made silk bags costing $55 each to King Power Company, its agent on 1 April 2018. Upon sending the consigned goods, Ban Phai Women's Cooperative paid the following expenditure: Freight & Packaging $2,900 Insurance 100 On 2 April 2018, King Power received the delivery of 950 bags. On 2 July 2018, King Power sent an Account Sale for 2nd quarter of 2018 showed that 750 bags were sold at $132 each and King Power incurred carriage expense of $6,750. From the contract agreement, King Power charged 10% of sale proceeds for its commission and claimed expenses paid on consigned goods before transferring the residual proceeds to Ban Phai Women's Cooperative. On 2 July 2018, Ban Phai Women's Cooperative presented a claim to the insurance company and got compensated at $2,200. Required a) Show the calculation of: The abnormal loss of missing bags The consigned inventory's valuation at the end of the 2nd quarter b) Present the Consignment Account in the book of Consignor, if it use perpetual inventory system and set separate accounts for consignment. c) Make the journal entries of loss on missing bags in the book of Consignor. PROBLEM P3-1) Second-Hand Music made a Consignment Agreement with On-line Shopping Company to sell its music instruments on On-line Shopping website. The Consignment contract will be renewed every year. From their arrangement, on 1 April 2018, Second Hand Music shipped the first lot of its merchandises to On-line Shopping, i.e. 20 guitars, 2 pianos, and 2 saxophones. The Cost per guitar, per piano, and per saxophone is $2,500, 315,000, and 122,000, relatively The agreement within the contract other than the consigned stocks is: 1) The retail price per guitar, per piano, and per saxophone is a 5,000, 32,000, and 45,000 2) On-line Shopping will get 10% of retail price for its commission 3) On-line Shopping can reimburse the direct costs related to consignment sale 4) The unsold stocks left over the expiration of the contract can be returned to Second Hand Music without charge. On 2 May 2018, Second Hand Music received an Account Sale from On-line Shopping: ACCOUNT SALES On-line Shopping Bangkok, Thailand No. 15678 May 2, 2018 Amount 254,000 40,000 32,000 Sales for account of Second Hand Music Account sales of Music Instrument Date Explanation Apr. 1, 18 units Consigned on hand 0 units Apr. 1 Consigned units received:- 20 guitars@5,000 2 pianos@832,000 2 saxophones@45,000 Apr. 1-30 Sales 8 guitars@85,000 Sales 1 piano@e32,000 Expenses incurred: Freight-out Packaging Advertising Commission (10%72,000) Net amount due Remittance enclosed Apr. 30 Amount due to Second Hand Music Ending Balances of consigned units:- 12 guitars@5,000 1 piano@32,000 2 saxophones@45,000 360 100 400 7,200 (8,060) 63,940 (60,000) 3,940 Additional information:- 1) 10 April 2018 Second Hand Music received a bill from Thai Logistic Ltd. for its transportation service of 1,800. 2) 1 April 2018 Second Hand Music paid cash for consigned goods packages of 8500 3) 12 April 2018 Second Hand Music received a bill from Prompt Pay Insurance for its service with a charge of 200 which already paid on the same day. 4) 30 April 2018 Second Hand Music shipped 3 guitars to On-line Shopping and had paid cash of $300 and 8120 for its transportation and packaging costs, relatively. Required a) Make the journal entries for Consignor and Consignee, if both companies use Perpetual Inventory System and set separate accounts for consignment. b) Present related items to consignment on Income Statements of Consignor and Consignee for the month of April. P3-2) Yuu Ltd. agreed to have Eleven Corp. sell its merchandise under the consignment contract. Eleven Corp. will get a 10% commission from sale and can reimburse any expenses directly to the consigned goods. 2018: Yuu Ltd.'s transactions June 1 Yuu Ltd. sends goods to Eleven Corp. costing $50,000 and had made cash payment of $1,000 for packing. 30 Yuu Ltd. had received a bill of $2,500 for consigned goods' freight and paid for the bill, already. Dec. 30 Yuu Ltd. received an Account Sales from Eleven Corp. ACCOUNT SALES Eleven Corp. Bangkok, Thailand No. 100-001 December 27, 2018 Sales for account of Yuu Ltd. Account sales of Office supplies Date Explanation Jan. 1, 18 units Consigned on hand 0 units June, 2 Consigned units received:- 68,750 2,500 dozen of Office supplies@ $27.50 Jun.-Dec. Sales 2,000 dozen of Office suppliese $27.50 55,000 Expenses incurred: Freight-out and cartage $2,000 Insurance 300 Warehouse rent Commission (10%55,000) 5,500 (8,300) Net amount due 46,700 Remittance endlosed (46,700) Amount 500 Dec. 30 Amount due to Second Hand Music Ending Balances of consigned units:- 500 dozen @ $27.50 2018: Eleven Corp.'s transactions June 2 Eleven Corp. received the goods from Yuu Ltd. and having a sale price of $27.50 per dozen 10 Eleven Corp. paid $300 for consigned goods' insurance. Eleven Corp. paid $500 for warehouse rent. June - December Eleven Corp. had sold of consigned goods for $55,000 cash. Eleven Corp. paid $2,000 cash for freight and cartage of consigned goods. Dec. 27 Eleven Corp. sent an Account Sales to Yuu Ltd. Required a) Make the journal entries for Consignor and Consignee, if both companies use Periodic Inventory System and set separate accounts for consignment. b) Present related items to consignment on Financial Statements of Consignor and Consignee c) If a physical counting of inventories report at Yuu's warehouse on 30 December 2018 shows the total costs of $285,000, how will Yuu present its inventories and costs on the Financial Position Statement? P3-3) Ban Phai Women's Cooperative consigned 1,000 hand-made silk bags costing $55 each to King Power Company, its agent on 1 April 2018. Upon sending the consigned goods, Ban Phai Women's Cooperative paid the following expenditure: Freight & Packaging $2,900 Insurance 100 On 2 April 2018, King Power received the delivery of 950 bags. On 2 July 2018, King Power sent an Account Sale for 2nd quarter of 2018 showed that 750 bags were sold at $132 each and King Power incurred carriage expense of $6,750. From the contract agreement, King Power charged 10% of sale proceeds for its commission and claimed expenses paid on consigned goods before transferring the residual proceeds to Ban Phai Women's Cooperative. On 2 July 2018, Ban Phai Women's Cooperative presented a claim to the insurance company and got compensated at $2,200. Required a) Show the calculation of: The abnormal loss of missing bags The consigned inventory's valuation at the end of the 2nd quarter b) Present the Consignment Account in the book of Consignor, if it use perpetual inventory system and set separate accounts for consignment. c) Make the journal entries of loss on missing bags in the book of Consignor