PROBLEM 4(2points each)

On April 15, 2019, Fire damaged the office and warehouse of Peacock Co. The trial
balance below was prepared from the general ledger which was the only accounting
record saved.
Peacock Co.
Trial Balance
March 31, 2019

Cash 35,000.00
Held for trading securities 350,000.00
Accounts Receivable 120,000.00
Inventory, December 31, 2018 225,000.00
Land 950,000.00
Building 800,000.00
Accumulated depr.- building 260,000.00
Machinery and Eqpt 130,500.00
Accumulated depr. Mach & Eqpt 69,400.00
Other non-current assets 98,000.00
Accounts Payable 71,100.00
Other expenses accruals 15,400.00
Ordinary share capital 1,220,600.00
Retained Earnings 849,000.00
Sales 405,000.00
Purchases 156,000.00
Other operating expense 26,000.00
2,890,500.00 2,890,500.00

The following information has been obtained:

1. The company's year-end is December 31
2. An Examination of the April Bank statement and canceled checks revealed the FF.
*Checks written,April 1-15 39,000.00
(17,100 paid to accounts payable as of March 31,
10,200 for april Merchandise shipments and 11,700 paid
other operating expenses.
*Deposits, April 1-15 38,850.00
(consisted of collections from customers with the
exception of a 2,850 refund from a supplier for goods
returned in April)
3. Communication with suppliers disclosed unrecorded payables at April 15 of
31,800.00 for April Merchandise shipments, including 6,900.00 for goods in transit
(FOB Shipping point) on that adte.
4. Customers acknowledged indebtedness in the amount of 108,000.00 (including
1,800 that will probably uncollectible). It was also estimated that customers owed another
24,000.00 that will never be acknowledged or recovered.
5.The insurance Company agreed that the fire-loss claim should be based on the assumption
that the overall grossprofit ratio for the past 2 years was in effect during the current year.
The company's audited Financial Statements disclosed the following information:
Dec 31,2018 Dec 31, 2017
Net sales 1,590,000.00 1,170,000.00
Net Purchases 840,000.00 705,000.00
Beg, Inventory 150,000.00 225,600.00
Ending Inventory 225,000.00 150,000.00

6. Iventory costing 21,000 was salvaged and sold for 10,500. The balance of the inventory
was a total loss.
Questions
15. Gross profit rate that will be used as the basis of insurance company for Peackock Co
claim.
16. Sales, January 1, 2019- April 15, 2019
17. Net Purchases Jan 1, 2019- April 15, 2019
18. Cost of inventory not destroyed by fire
19. Inventory fire loss
20. Estimated Cost of Goods Sold