€ 150,000 of stock held by BTM for investment purposes have increased by 15% in value over the last year Account Stocks held for investment BTM pay € 800 for rent Account Bank A/c D Account Materials D Cr Cr BTM change the valuation of some materials in stock from FIFO to LIFO. The adjustment lowers the value of the materials by 12%. Initial value was € 20,000 Cr BTM repairs an old machine that has been written off completely, to use it another two years. The repairs are done by a third party, a repairs specialist. BTM pays them with € 640 in cash- and € 360 with two power drills (their bestselling product)

€ 150,000 of stock held by BTM for investment purposes have increased by 15% in value over the last year Account Stocks held for investment BTM pay € 800 for rent Account Bank A/c D Account Materials D Cr Cr BTM change the valuation of some materials in stock from FIFO to LIFO. The adjustment lowers the value of the materials by 12%. Initial value was € 20,000 Cr BTM repairs an old machine that has been written off completely, to use it another two years. The repairs are done by a third party, a repairs specialist. BTM pays them with € 640 in cash- and € 360 with two power drills (their bestselling product)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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