n April 15, 2015, fire damaged the office and warehouse of Stanislaw Corporation
ID: 2415794 • Letter: N
Question
n April 15, 2015, fire damaged the office and warehouse of Stanislaw Corporation. The only accounting record saved was the general ledger, from which the trial balance below was prepared.
STANISLAW CORPORATION
TRIAL BALANCE
MARCH 31, 2015
Cash
$29,000
Accounts receivable
44,500
Inventory, December 31, 2014
77,500
Land
39,800
Buildings
111,100
Accumulated depreciation
$43,500
Equipment
3,770
Accounts payable
32,900
Other accrued expenses
15,360
Common stock
101,710
Retained earnings
61,200
Sales revenue
139,300
Purchases
61,200
Miscellaneous expense
27,100
$393,970
$393,970
The following data and information have been gathered.
Year Ended
December 31
2014
2013
Compute the amount of inventory fire loss. (Round ratios for computational purposes to 1 decimal places, e.g 78.5% and final answer to 0 decimal places, e.g. 28,987.)
STANISLAW CORPORATION
TRIAL BALANCE
MARCH 31, 2015
Cash
$29,000
Accounts receivable
44,500
Inventory, December 31, 2014
77,500
Land
39,800
Buildings
111,100
Accumulated depreciation
$43,500
Equipment
3,770
Accounts payable
32,900
Other accrued expenses
15,360
Common stock
101,710
Retained earnings
61,200
Sales revenue
139,300
Purchases
61,200
Miscellaneous expense
27,100
$393,970
$393,970
Explanation / Answer
Amount of inventory destroyed by fire =Beginning + purchase -return - cost of inventory salvage
= 77500+ (3560+23100)-880 - 7560
= 95720
Inventory fire loss = $ 95720
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