Keiko Company took a physical inventory at December 31, 2020 and determined that RM3,530,000 of goods were on hand. In addition, the company had goods consigned with Chang Company that had a cost of RM700,000. On December 29, Keiko sold and shipped f.o.b. shipping point RM600,000 worth of inventory. These goods arrived at the buyer's place of business on January 4, 2021. What amount should Keiko report as inventory on its December 31, 2020 statement of financial position? O A. RM4,730,000. O B. RM3,530.000.

Keiko Company took a physical inventory at December 31, 2020 and determined that RM3,530,000 of goods were on hand. In addition, the company had goods consigned with Chang Company that had a cost of RM700,000. On December 29, Keiko sold and shipped f.o.b. shipping point RM600,000 worth of inventory. These goods arrived at the buyer's place of business on January 4, 2021. What amount should Keiko report as inventory on its December 31, 2020 statement of financial position? O A. RM4,730,000. O B. RM3,530.000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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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. 35,000
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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.
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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.
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