Shellan Kamp Company Identifies the Following Items for Possible Inclusion

question 4

Essay

Shellan Kamp Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking.
1. Goods shipped on consignment by Shellan Kamp to another company.
2. Goods in transit from a supplier shipped FOB destination.
3. Goods shipped via common carrier to a customer with terms FOB shipping point.
4. Goods held on consignment from another company.

---

Definitions:

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of the shareholders.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific moment in time, showing assets, liabilities, and shareholders' equity.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of cash.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company’s profits.