Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. part a (8 marks) when you undertook the preparat

Part A (8 marks) When you undertook the preparation of the financial statements...

60.1K

Verified Solution

Question

Accounting

Part A (8 marks)

When you undertook the preparation of the financial statements for Telfer Company at January 31, 2019, the following data were available:

At Cost At Retail

Inventory, February 1, 2018 70,800 98,500

Markdowns 35,000

Markups 63,000

Markdown cancellations 20,000

Markup cancellations 10,000

Purchases 219,500 294,000

Sales 354,000

Purchases returns and allowances 4,300 5,500

Sales returns and allowances 10,000

Requirement

Compute the ending inventory at cost as of January 31, 2019, using the retail method which approximates lower of cost or net realizable value. Your solution should be in good form with amounts clearly labelled. (8 marks)

Part B (8 marks)

Santana Corporation has 400,000 ordinary shares outstanding throughout 2019. In addition, the corporation has 5,000, 20-year, 7% bonds issued at par in 2017. Each 1,000 bond is convertible into 35 ordinary shares. During the year 2019, the corporation earned 600,000 after deducting all expenses. The tax rate was 30%.

Requirement

Compute the diluted earnings per share for 2019. (8 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students