INTERMEDIATE FINANCIAL ACCOUNTING ASSIGNMENT

You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment.

Q1 Describe perpetual system and periodic system.

Q2. AG Inc. made a $10,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit.

Prepare the journal entries for following:

1- Record the sale [1 point]
2- Payment on $6,000 of sales within discount period?
3- Payment on $4,000 of sales received after discount period?

Q3. An inventory taken the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is available from the books:

Inventory on hand, March 1 $ 84,000
Purchases received, March 1 - 11 63,000
Sales (goods delivered to customers) 120,000
Past records indicate that sales are made at 50% above cost.

Required: Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation.

Q4 Pinkel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2011, consists of products D and E,Relavant per-unit data for these products appear below.

                                       Item        Item
                                       D            E
Estimated selling price        €180       €165
Cost                                 110        120
Cost to complete               45          45
Selling costs                      15          27