Explain the steps necessary to calculate and record LIFO Reserve, and consequential Write-Down under Conventional Retail Inventory Method.

Q: On June 30, 2020, Cape Company purchased 25% of the outstanding ordinary shares of Bit Co. at a tota...

A: Under the fair value method, the investment is reported at the fair value of the market share of the...

Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables tur...

A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total Asse...

Q: QUESTION 2 Kaanapali Merchandising had the following transactions during November: Nov 1 Beginning i...

A: Journal is the basic book of recording transactions which incurred are recorded. 

Q: Account Titles Debit Credit Cash 11,400 5,620 1,050 Accounts Receivable Supplies Prepaid Insurance E...

A: The adjustment entries are prepared to adjust the revenue and expenses for the current period.  

Q: The "Double-entry system of Accounting" means that every transaction c recorded in two steps. They a...

A: Solution: Double-entry system of accounting is a method of recording transactions in which every tra...

Q: 5. A retailer buys an article from the wholesaler at OMR 80 and the wholesaler charges a sales tax a...

A: a) Price that consumer have to pay would be- 100+8%of 100= 108.   b) Input Tax:  80*8%= 6.4   Output...

Q: After a successful year for your beach shop, you are wondering whether to open one more store this y...

A: Formula: Expected Profit = (Profit in case of Sunny weather X Probability of Sunny Weather) + (Profi...

Q: n, Inc. uses the high-low method to analyze cost behavior. The company observed that at 17,000 machi...

A: Solution; Variable cost per unit will be computed in this case through high low method. Then Fixed c...

Q: Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) ...

A:

Q: 13-If there are Credit sales by Mason Branch amounted to $80,000; the branch's cost of the merchandi...

A: Note: As per our guidelines, only the first question shall be answered    13. Home Office: Date A...

Q: On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use thi...

A: Depreciation means fall in the value of assets due to its usage, wear and tear and with efflux of ti...

Q: ara is twenty-five years old, Eileen is fifty years old, and both work for Grace's Pet Toys, Inc., w...

A: Age Discrimination in Employment Act:  This is Age discrimination in Employment act 1967. This act p...

Q: Transaction data 7or Royae ReaEstate Agency are presentes as tollovs Janei Royaie Segins nusiness as...

A: Journal entries are the recording of business transactions in a way which provides meaningful and us...

Q: Product Mix Decision, Single Constraint Sealing Company manufactures three types of DVD storage unit...

A: Answer 1) In the given question machine hours are limited to 15,000 hours. Therefore, machine hours ...

Q: What amount should be reported as accrued liability on December 31, 2023?      What amount should b...

A: 1. As the Grapes Company became aware in December 2023 that Engineering flaw in the product poses a ...

Q: What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution fro...

A: As per sec 331,  liquidating distribution from corporation is full and final payment for the shareho...

Q: ABC Corporation is a company that specializes in (1) research and development of new medications and...

A: As per IFRS, Intangible Assets are recognized initially at cost but may be revalued to fair value on...

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire o...

A: Risk assessment procedures is also written as RAP, is the audit procedures performed by auditor for ...

Q: On November 1, 2020, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a for...

A: In the given problem, here the Yuan is selling at a discount in the forward Market where( Forward ra...

Q: What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution fro...

A: Under Sec. 331, a liquidating distribution is considered to be full payment in exchange for the shar...

Q: Take me to the text Wedge Inc. is planning to purchase $363,000 worth of 6-year bonds issued by Geor...

A: The bonds are the financial instruments of the business which are used for investment purposes or to...

Q: to the text On July 1, 2020, Kabir Company, a private company, decided to buy $283,000, 3% 13-year b...

A: The bonds are the financial instruments used to raise money from the market or for other investment ...

Q: Monty Corp. reported net sales $610,000, cost of goods sold $366,000, operating expenses $151,000, a...

A: Gross Profit margin is the % of revenue that exceeds the COGS Gross profit Margin = Revenue - COGS/ ...

Q: Kaanapali Merchandising had the following transactions during November: Nov 1 Beginning inventory wa...

A: Under FIFO cost flow assumption, cost of goods sold are valued at cost of first purchase and ending ...

Q: 41. SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT Profession...

A: Expenses like rent, professional fees, sub-contracted services are subject to withholding tax in Phi...

Q: What are the purpose and financial reporting requirements for the General and Special Revenue Funds?...

A: The general fund is the primary operating fund of a government, and it is responsible for anything t...

Q: Oliver CommuRNcations, Inc., began 2018 with 260,000 shares of $1 par common stock issUd and outstar...

A: Answer) Journal Entry for Issuance of Common Stock Date  Accounts  Debit  Credit Ap...

Q: Citrus Corporation is a calendar year S corporation with the following current year information: Ope...

A: As per IRS The operating loss that Grapefruit can deduct currently  = 60% purchase price of citrus c...

Q: On April 1, 2024, Oakland Corporation realizes that one of its main suppliers is having difficulty m...

A: Entries are used to keep financial transactions organized. Your journal entries are entered into to ...

Q: Question Content Area The Whizbang Company makes a special type of toy. Each top takes 6 ounces of a...

A: Solution...     Standard quantity of material used  = Actual output * standard quantity per unit  = ...

Q: the capital gains tax due is?

A: Capital gains tax is the tax which is computed on the capital assets which has been sold during the ...

Q: Safety-First Company completed all of its October 31, 2020, adjustments in preparation for preparing...

A: Calculation of impairment loss   Book Value ($) Recoverable value ($)  Impairment loss ($) Land...

Q: n each of the cases below, assume that Division X has a product that can be sold either to outside c...

A: Transfer price is the price charged by the selling division from buying division for the transfer ma...

Q: on of a small bus

A: The TWDV is defined as, TWDV = Original Value – Capital Allowance Or Capital Allowance = Original Va...

Q: Nicanor, resident citizen, sold his shares of stock from ABC Corporation, a foreign corporation base...

A: a. Only S1 is true

Q: Please solve d, e1,e2,f,g   Oriole Industries and Waterway Inc. enter into an agreement that require...

A:   Annual lease payment PVF @7%   Present value of lease payments 3,62,863 7.02358 2,548,598

Q: Problem 4: On January 1, 2017, an entity purchases marketable equity securities for P2,000,000. The ...

A: When entity has elected to measure the change in the fair value through other comprehensive income t...

Q: Provided the stages within a project life cycle, please put them into a proper order: [4] Initiating...

A: Lets understand the basics. Project life cycle is a cycle order in which project needs to run. It is...

Q: Your discount brokerage firm charges $7.95 per stock trade. How much money do you need to buy 200 s...

A: Solution: Nos of share of PFE to be purchased = 200 shares Price per share = $31.40  

Q: ent value of note in 60,747 48,037 33,801 142,585

A: Given: Franchisee probability of collection cash down payment present value of note  Direct cost ...

Q: QUESTION 50 Rita loans her Accounting textbook to Tony, free of charge. This is a bailment for a. th...

A: The person who delivers the goods is known as the bailor. On the other hand, the person to whom the ...

Q: processed further. Additional processing requires no special facilities, and production costs of fur...

A: Solution..     Total sales value at split off point  = $40,000 + $15,000 + $16,000  = $71,000  Sales...

Q: Food Beverage Beginning Inventory $110,000 $38,500 Ending Inventory $98,470 $41,000 Purchases $488,0...

A: Unadjusted cost is calculated using the beginning inventory with purchases and deducting the ending ...

Q: Using the above information, what is the depreciable basis that Brittany should use in her business ...

A: Introduction:- Depreciable basis is the amount of asset that should be depreciated over its useful l...

Q: An entity owned 100% of another entity’s preference shares and 20% of ordinary shares. The investee’...

A: As per IFRS 9 Financial instruments Purchase of Preference shares will not be considered as an inves...

Q: Davis & Company is an architectural firm specializing in home remodeling for private clients and new...

A: Answer) Calculation of Amount to be Billed Amount to be billed = Total Cost of Job X 132% Amount to ...

Q: What are the advantages and disadvantages of the participatory approach to budgeting?

A: Participative budgeting is a budgeting process in which the people who are in the lower levels of ma...

Q: proceeds of the sale in acquiring a new principal residence, the capital gains tax due is?

A: Nicanor Sold Rest House for = P 8000000 Fair Market Value of rest house at the time of sale ( Determ...

Q: Phil Corporation gave Manager A, a resident citizen grocery allowance worth P 39,000 How much is the...

A: Fringe benefits provided to the managerial and supervisory employees are taxable with the 32% fringe...

Q: Sarasota Corp. reported net sales $ 600,000, cost of goods sold $ 336,000, operating expenses $ 160,...

A: Formula: Profit margin = ( Net income / Net sales ) x 100

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.