What amount should be presented as a deduction from cost of goods sold?
Q: Changes in Current Operating Assets and Liabilities-Indirect Method Victor Corporation's comparative...
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the...
Q: The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Ba...
A: Ratio analysis means where different ratio of various years of years companies has been compared and...
Q: (Assume If credit terms of "2/10, net 40" are offered, the approximate cost of not taking the discou...
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after...
Q: What is the difference between reporting accounting changes, changes in estimates, and error correct...
A: Financial Reporting: Financial reporting is the method involved with archiving and conveying monetar...
Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated deprecia...
A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the an...
Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated deprecia...
A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the an...
Q: The unearned rent account has a balance of P36,000. If P4,000 of the P36,000 is unearned at the end ...
A: Adjusting entries are recorded in the books in order to add the correct effect of transactions in th...
Q: Garrison Manufacturing has the following standard cost sheet for one of its products: direct materi...
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Dir...
Q: After the accounts have been adjusted at October 31, the end of the fiscal year, the following balan...
A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In th...
Q: ed (1,200) actuarial revaluation, De...
A: Net benefit obligation is the difference between the present benefit obligation and the fair value o...
Q: The following product costs are available for Arrez Company on the production of DVD cases: direct m...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Heather, an individual, reported the following items of income and expense during the current year: ...
A: Working notes :- Alimony , Post -TC &J...
Q: 7. An individual deposits an annual bonus into a savings account that pays 6% interest compounded an...
A: Interest rate = 6% First deposit = $20000 Annual increase in deposits = $5000 Number of annual depos...
Q: Sheffield Manufacturing Company collected the following production data for the past month: Units To...
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest ...
Q: On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $2,054,400 in cash considera...
A: Solution Owner's Equity as the proportion of total value of a company's assets that can be claimed ...
Q: 5. An Office Equipment had a cost of P40,000 and its accumulated depreciation is P2,000. At the end ...
A: Increase in expenses should be debited. Accumulated depreciation is a contra asset account and incre...
Q: On July 1, 2022, Pharoah Company pays $14,384 to Carla Vista Co. for a 2-year insurance contract. Bo...
A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made a...
Q: A wholly-owned subsidiary of a corporation is liguidated. The corporation has a basis of $300,000 in...
A: Realized gain Realized gain is referred to as those results from selling an asset at a price higher...
Q: riole Company purchased a machine on January 1, 2019, for $927000. At the date of acquisition, the m...
A: Solution Given Cost 927000 Original estimated life 6 years Revised useful life 8 y...
Q: per Equivalent Unit and Production Costs The following information concerns production in the Forgin...
A:
Q: 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base ...
A: Trend analysis is one of the technique of financial statements analysis under which each item in bal...
Q: One advantage of switching from a partnership to the corporate form of organization is the following...
A: It makes it easier for the firm to raise additional capital
Q: 37.What inventory system would you expect to find in the following situations? A. Diamond ring depa...
A: Solution Concept Perpetual inventory system is a system of inventory where the record of inventory I...
Q: ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12% pay...
A: The question requires calculation of interest on December 31 , 2022. Given that , Interest payable =...
Q: A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five...
A: Fair value with no growth: December 31, 2021 Fair value with no growth (Same Age) 2 years old = 35 ...
Q: Which of the statements related to stakeholder conflict in business is FALSE? A. Stakeholders are ...
A: Solution Concept Stakeholders of business Stakeholders in business means the persons...
Q: Richard Gaziano is a manager for Health Care, Inc. Health Care deducts Social Security, Medicare, an...
A: Solution Working- Social security tax = 1000*6.2% = 62 Medicare tax = 1000 * 1.45% = 21.025 Withhol...
Q: on January 1, 2018 the balance of Tanali Traders stood as follows: Cash in hand Rs. 2,000; Cash at...
A: The ledgers are the accounting books of the organization which record all of the financial data incu...
Q: Selected data concerning the past year’s operations of the Beachwear Manufacturing Company are as fo...
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...
Q: Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a total co...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: E4.13 (LO 3), AN Keenan Company has an inexperienced accountant. During the first 2 weeks on the job...
A: Journal entry: A Journal entry is used to record a business transaction in the accounting records of...
Q: Fig Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods priced ...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: The following income statement items appeared on the adjusted trial balance of Schembri Manufacturin...
A: Part 1 SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended D...
Q: The inventory records of Kiwi Company show the following purchases during the first quarter operatio...
A:
Q: 6. If as of December 31, 2021 the rent of P10,000 for the month of December had not been recorded or...
A: Increase in expense should be debited. Increase in liabilitie should be credited.
Q: CASE 3-22 Plantwide versus Departmental Overhead Rates; Pricing L03-1, LO3-2, L03-3, LO3-4 "Blast it...
A: NOTE : As per Bartleby's guidelines, we are supposed to answer only 3 sub-parts in chronological ord...
Q: 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $66,640 Variable cos...
A: Gross margin = Sales - Cost of goods sold Contribution margin = Sales - Total variable costs
Q: YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after d...
A: In the given question theft occured on February 14, and in that date Inventory was P5500000. The oth...
Q: Meena is a trader. On 31 December 2017 Meena's cash book (bank columns) showed an overdrawn balance ...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: When the effective interest method is used, the amortization of the bond premium decreases interest ...
A: Lets understand the basics. For amortization of premium and discount, there are two methods which ar...
Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated deprecia...
A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the an...
Q: The inventory records of Cattle Company show the following purchases during the first quarter operat...
A: FIFO means the first in first out which means that goods purchased first will be sold first. Weight...
Q: QUESTION 23 For 2021, Forrway Corporation, an Accrual Basis calendar year corporation, had Net incom...
A: Solution Net Income Refer to the amount an individual or business makes after deducting costs, allow...
Q: 18.Net realizable value is a. acquisition cost plus estimated costs to complete and sell b. estima...
A: Introduction:- Net realizable value method used for valuation of the ending inventory. Net realizab...
Q: Calculation of Ga
A:
Q: Let's try these: Prepare the journal entries for the following transactions: July 1- Mr. Bon Hok wit...
A: Partnership firm is a corporate structure where two or more persons come together to share profits o...
Q: Lychee Company uses the retail method of inventory valuation. The following information is available...
A:
Q: APOL Company provided the following information related to the ending inventory of its Product X: Hi...
A: Inventory to be reported in the Statement of financial position = Lower of cost and Net realizable v...
Q: Determine the amounts that Beckman should report in its year-end consolidated financial statements f...
A: Amount Non-controlling interest in subsidiary income $9,640 ...
Q: Which of the following is deductible as interest on Schedule A? a.Subscriptions to professional pub...
A: Answer Schedule A is for itemized deductions.it contains medical and rental expense, contribution an...
Step by step
Solved in 2 steps
- 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.Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.
- Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: The following; additional information is also available. The December 31, 2019, ending inventory is 14,700. During 2019, 4,200 shares of'common stock were outstanding the entire year. The income tax rate 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskins cost of goods sold. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 multiple-step income statement. 4. Prepare a 2019 statement of comprehensive income.Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.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.
- The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry that Heller Company would make at the beginning of 2020 to record the cumulative effect of the change from LIFO to FIFO. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
- 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.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. $69,500Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.