During 20x3, Pryor Company changed its inventory method from the LIFO to FIFO. The beginning inventory under FIFO is $20,000 higher than under LIFO. Prepare the journal entry to record this accounting change. Ignore income tax.
Q: Would you please explin step 4 from where you for total assets and euity
A: Total assets includes the current assets as well as non current assets (including tangible and…
Q: Owner Shirl Low is considering franchising her Noodles by Low restaurant concept. She believes…
A: The contribution margin ratio is the percentage difference between a company's revenue and variable…
Q: issued a bond of 500,000 of 10.5% bonds dated 7/1/18 and due 7/1/28. Interest is payable ANNUALLY on…
A: ANSWER:- JOURNAL ENTRIES Date Account titles and explanation Post…
Q: 13. The following information are taken from the actuarial valuation report for an entity's defined…
A: The defined benefit pension plan is a kind of pension plan and the main advantage of this plan is…
Q: Cheese Factory uses a perpetual inventory system. The following activities occurred during May: •…
A: In contrast to the net method approach, the gross method documents a bill at the total price,…
Q: . It has been suggested that published accounting statements should attempt to be relevant,…
A: Relevance: Relevance is a key principle in accounting, as it means ensuring that information is…
Q: Record the purchase on account of $4,400 of merchandise for resale in the province of Manitoba,…
A: Perpetual inventory system: It implies to a technique that is used by the business to maintain it's…
Q: Lia is a cash basis self-employed air-conditioning repairman with 2022 gross business receipts of…
A: Taxable Income is the income over which tax is calculated as per Income tax Law. Taxable Income…
Q: Jeremy (unmarried) earned $100,300 in salary and $6,300 in interest income during the year. Jeremy's…
A: A tax refund is a reimbursement to taxpayers who have overpaid their taxes, often due to having…
Q: tatement of Cash Flows for the following: The comparative balance sheet of Yellow Dog Enterprises…
A: The cash flow statement is one important financial statements for the business. It records the cash…
Q: Sheila Williams, a medical secretary, earns $2,617 monthly for a 34-hour week. For overtime work,…
A: The regular hourly rate Upto 40 hours Beyond this overtime rate of 150% on normal wage rate
Q: Statement of cash flows for the following: The comparative balance sheet of Livers Inc. for…
A: Cash flow statement is one of financial statements. Cash flow statement can be prepared by two…
Q: 4. On January 1, 2015, PHANTOM LANCER INC., RIKI CORP and NAGA SIREN CORP. establish a joint…
A: Depreciation: When the value of a fixed asset is decreased or reduced as a result of it's continuous…
Q: What is a job order cost system? Describe a situation in which you would use job order cost…
A: Methods of product costing - are used to ascertain or assign a cost to the product or services…
Q: Assume that IBM leased equipment that was carried at a cost of $163,000 to Ivanhoe Company. The term…
A: Journal entries is a tool for recording business transactions into accounting records.
Q: Required information Problem 15-3A (Algo) Debt investments in available-for-sale securities;…
A: A debt or equity security that is available for sale is one that is bought with the intention of…
Q: Missing Amounts from Balance Sheet and Income Statement Data One item is omitted in each of the…
A: The accounting equation is written as assets equal to sum of liabilities and equity. The equity…
Q: What is the share of B in the maximum possible loss on January 31, 2021?
A: Statement showing computation of maximum possible loss of partners Date Particulars Amount…
Q: Please provide journal entries for the below situation, including payment of bill.
A: Given in the question: Security deposit has been deposited on the January 1, 2022 for the utilities…
Q: How much is the deductible interest expense?
A: As per the Philippians Law, Any Person can get a total deduction of total Interest Expense upto the…
Q: Debtors were shown in balance sheet at Rs 80,000. Debtors were realised at a discount of 7%. The…
A: INTRODUCTION: The revenue recognition principle or the realization idea in accounting is a mechanism…
Q: hy would a company use multiple overhead ersus a single plantwide rate? Check all that apply) It…
A: The different ways of allocation of overhead to the production are single overhead rate and multiple…
Q: Dinnell Company, with a June 30 year-end, owns the following assets: A с 2017" 2019 $20,000 $100,000…
A: Depreciation is considered an expense charge on the value of the Asset. It can be calculated by…
Q: Discuss the three common Valuation Approaches, their applications, and give an example of Valuation…
A: In accounting we often use accounting figures and numbers to value a business. Different methods are…
Q: The LizQuen Partnership was formed on October 1. At that date, the following assets were…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Blossom Ltd., which follows ASPE had the following comparative statement of financial position:…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Question 2: Axle Company no longer needs a large computer for its business, so it wants to trade its…
A: If exchange have commercial substance, the value of new assets will be recorded at fair value of…
Q: Assume that IBM leased equipment that was carried at a cost of $96,000 to Blossom Company. The term…
A: Journal Entry :- The act of logging any transaction, whether or not it is an economic one, is known…
Q: b. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at…
A: A joint venture seems to be a short-term commercial endeavor in which two or more individuals…
Q: Required information. Problem 5-41 (LO 5-1) (Algo) [The following information applies to the…
A: Answer It has been given that Ellis bought 225 shares at $45 per share in XYZ company Economic…
Q: The lender charges three points to get the mortgage. How much do the points cost you?
A: Solution Calculated the points cost Cost of one unit Home = $200000 Less:25% Down…
Q: Instructions: analyze the transaction using Copy Clear Format post it to the ledger Income…
A: Analysis of Accounting Transaction Studying and assessing the financial data associated with a…
Q: Maxell Company uses a periodic inventory system. Consider the following information: Date June 2…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Inventory…
Q: Forten Company's current year income statement, comparative balance sheets, and additional…
A: First we need prepare Accounts Receivable Account to find out cash collection from customers.…
Q: On December 31, 2020, Vaughn Manufacturing has $6030000 of short-term notes payable due on February…
A: Short term liabilities or current liabilities are those liabilities which needs to be settled or…
Q: On December 21, 2025, Blue Company provided you with the following information regarding its equity…
A:
Q: The lower the revenue per employee, a. the more efficient the company is in generating revenue from…
A: Revenue per employee is the average money the employees generated for the store. It is the…
Q: Ravine Corporation purchased 40 percent ownership of Valley Industries for $115,600 on January 1,…
A:
Q: Following is a bank reconciliation for Zocar Enterprises for June 30, Year 2: Cash Account…
A: A bank reconciliation statement aligns an organization's bank account with its financial documents…
Q: A company includes one coupon in each box of cat food it sells. In return for 20 coupons and a…
A: Expenses need to be book with amount actually spent. For balance expected expenses we have to book…
Q: Required: For each of the transactions, if an expense is to be recognized in January, indicate the…
A: Under Accrual Based Accounting, expenses are recorded as and when they incurred. Payment date of…
Q: Assume Anderson Cleaning Service had net income of $1,020 for the year. Anderson Cleaning Service's…
A: Given, Net Income = $1,020 Beginning total assets = $4,970 Ending total assets = $4,630
Q: Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no…
A: The contribution margin is equal to the selling price per unit less the variable cost per unit. The…
Q: King Ltd. provides the following information about its contributed capitals from its balance sheet…
A: Answer:- Earnings available for the common shareholders:- The earnings that are accessible to…
Q: Account Balances as of December 31, Year 2 Accounts receivable Accounts payable Salaries payable…
A: Closing entries are those which are reported in the books in order to close the temporary accounts…
Q: "Don't tell me we've lost another bid!" exclaimed Janice Hudson, president of Prime Products Inc.…
A: Under plantwide overhead rate a single overhead rate is computed while under departmental overhead…
Q: Required information [The following information applies to the questions displayed below.] The…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: There are no precise valuations". Explain
A: This quote is referring to the idea that there is no exact, reliable way to value something. It…
Q: (a) Prepare T accounts and enter the opening balances. (This has been done for you on the template.)…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Problem 15. On December 31, 2020, the Statement of Financial Position of ABC Partnership with…
A: Introduction The term "liabilities" in accounting refers to any sort of financial debt that a…
Step by step
Solved in 2 steps with 1 images
- Schmidt Company began operations on January 1, 2018, and used the LIFO inventory method for both financial reporting and income taxes. However, at the beginning of 2020, Schmidt decided to switch to the average cost inventory method for financial and income tax reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the LIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Schmidt is subject to a 21% income tax rate in all years; it pays all income taxes payable in the next quarter. Assume that any deferred tax liability was paid in the subsequent year. Schmidt had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Schmidt had cash of 15,600, inventory of 34,000, other assets of 76,000, income taxes payable of 4,200, and accounts payable of 3,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in method at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.If Barcelona Companys ending inventory was actually $122,000, but the cost of consigned goods, with a cost value of $20,000 were accidentally included with the company assets, when making the year-end inventory adjustment, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
- Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2020, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the FIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Koopman is subject to a 21% income tax rate in all years; it pays the income taxes payable of a current year in the first quarter of the next year. Koopman had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Koopman had cash of 10,000, inventory of 24,000, other assets of 70,800, accounts payable of 4,500, and income taxes payable of 6,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in methods at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.
- Shetland Company reported net income on the year-end financial statements of $125,000. However, errors in inventory were discovered after the reports were issued. If inventory was understated by $15,000, how much net income did the company actually earn?Tanke Company reported net income on the year-end financial statements of $850,200. However, errors in inventory were discovered after the reports were issued. If inventory was overstated by $21,000, how much net income did the company actually earn?Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
- Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Borys Companys periodic inventory at December 31, 2019, is understated by 10,000, but purchases are correct. Johnson correctly values its 2020 ending inventory. What is the effect of this error on Boryss 2019 and 2020 financial statements?