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.