Question 9 Boyne Inc . had beginning inventory of $ 15,000 at cost and $ 25,000 at retail . Net purchases were $ 150,000 at cost and $ 212,500 at retail . Net markups were $ 12,500 ; net markdowns were $ 8,750 ; and sales were $ 196,250 . Compute ending inventory at cost using the conventional retail method .
Question 10 ( Gross Profit Method ) Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes . Presented below is information for the month of May .
Question 11 Previn Brothers Inc . purchased land at a price of $ 30,400 . Closing costs were $ 1,820 . An old building was removed at a cost of $ 14,850 . What amount should be recorded as the cost of the land ?
Question 12 Garcia Corporation purchased a truck by issuing an $ 108,000 , 4-year , zero-interest-bearing note to Equinox Inc . The market rate of interest for obligations of this nature is 10 %. Prepare the journal entry to record the purchase of this truck .
Question 13 Mohave Inc . purchased land , building , and equipment from Laguna Corporation for a cash payment of $ 352,800 . The estimated fair values of the assets are land $ 67,200 , building $ 246,400 , and equipment $ 89,600 . At what amounts should each of the three assets be recorded ?
Question 14 Fielder Company obtained land by issuing 2,000 shares of its $ 12 par value common stock . The land was recently appraised at $ 103,700 . The common stock is actively traded at $ 50 per share . Prepare the journal entry to record the acquisition of the land .