Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available: Year Pretax Operating Excess of FIFO Ending Inventory Income using LIFO over LIFO Ending Inventory 2020 $40,000 $8,000 2019 20,000 7,000 2018 30,000 4,000         The income tax rate is 35%. The company began operations on January 1, 2018, and has paid no dividends since inception. Required:   Answer the following questions relating to the 2019-2020 comparative financial statements. a. What is net income for 2020? b. What is restated net income for 2019? c. Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements.

Q: On July 1, 2022, X Co. borrowed $520,000 at 7%. The loan is repayable over 5 years in annual…

A: Formula: Payment of Principal = Annual installments - Interest payment where, Interest payment =…

Q: In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this…

A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in inventory…

Q: Metro Pacific w ce which include nicle and regist gaged in trade

A: Company included the car plan in its compensation = P3000000 General sense, Car or any motor vehicle…

Q: Marichu Company manufactures a special product. To promote the sale of the product, a premium is…

A: Here calculation of Premium expenses which are incurred in the financial year of 2022.  For…

Q: On December 1, 2022, Grenade Company assigned specific accounts receivable totaling P2,000,000 as…

A: When a borrower keeps the accounts receivable as collateral while borrowing money from a lending…

Q: Accounting

A: Product pricing is a very crucial decision to be taken by the management. Different techniques such…

Q: Two items are omitted from each of the following three lists of cost of goods sold data from a…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Its correct to assume that finished goods for one company would also be classified as finished goods…

A: Inventory represents an asset for the company that is reported under the head current asset in the…

Q: Assume the following account balances Accounts Payable $35,000 Accounts 45,000 Receivable Bank Loan…

A: GIVEN   Accounts Payable   $35,000 Accounts Receivable  45,000 Bank Loan  65,000 Cash   30,000…

Q: Assume that the Valenzuela Corporation issues P1,000,000, 5-year, 12% bonds on March 2020. bonds,…

A: Formula: Interest amount = Bond amount x Interest rate x Time period

Q: Define the following concepts: a)Prime cost    b) Non production cost

A: The question requires us to define two terms related to costs i.e. Prime Cost and Non Production…

Q: Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc.…

A: a. Determination of gain recognized   $ Cash paid $445,700 Liabilities assumed $178,100…

Q: Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the…

A: Assets: Assets are the economic resource of a company from which it can pay its liabilities at the…

Q: During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting…

A: The amount of retained earnings fluctuates form year to year with changes in income, dividends or…

Q: Calculate the hourly operating cost (under average conditions) for a 180- horsepower motor grader…

A: The operating cost that those costs are incurred to run the operations of the business. The per-hour…

Q: Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: . What amont of money is equivalent to receiving ₱ 10,000 three years from today, if interest is…

A: Present value is the value which has been computed by the company are by the investor when the…

Q: Budgeted purchases in December are:

A: Opening inventory + Purchase - Sales = Closing inventory

Q: Jason Thompson purchased an office building 10 years ago for $780,000. The building was just…

A: Assets are generally recorded at cost and remain on the accounting records at cost until they are…

Q: On June 1, 2021 Maroon Company entered into a 5-year nonrenewable lease, commencing on that date,…

A: As an operating lease, rent expense will be recognized uniformly over the 5-year term of the lease…

Q: Vernon-Nelson Chemicals is planning to release a new brand of insecticide, Bee-Safe, that will kill…

A: The question is based on the concept of Financial Management. Incremental earnings are the after tax…

Q: A company earned net income of $6,000 in its first month of business and pai dividends of $1,000.…

A: Shareholders' equity shows how much the owners of a company have invested in the business either by…

Q: Pratt owns

A: Section 1231 can be considered the “best of both worlds” for a taxpayer it allows the taxpayer to…

Q: Contina Co. owed Maunlad Bank a P3,000,000, three-year, 10% note payable dated January 1, 2012. The…

A: Restructuring in Notes Payable For the Restructuring of the Debt which are provided by the financial…

Q: 1. Question Content Area Sales Budget FlashKick Company manufactures and sells soccer balls for…

A: Budgeting is an important tool for the cost managers of an entity it helps to forecast the…

Q: What is the amount of net income after tax that Vignette Company should report for the year 2021?…

A: The percentage of completed contract method is used to account for long-term construction contracts…

Q: In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: information prepar nt for Steven and C

A: A sale and lease back agreement is a contract between two parties where one party sells an asset to…

Q: A July sales forecast projects that 7,300 units are going to be sold at a price of $11.80 per unit.…

A: GIVEN   A July sales forecast projects that 7,300 units are going to be sold at a price of $11.80…

Q: In a period, sales are $140,000, purchases $75,000 and other expenses $25,000. What is the figure…

A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…

Q: Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc.…

A: as per your requirement adjusted basis are as follows

Q: es payable inc P3 million, 10% onths. one-year term

A: Current Liabilities:

Q: Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies.…

A: Retained earning is the earning accumulated over a period of time. It is used for various purposes…

Q: 2. Pinky Company plans to buy a new machine to increase its plant's productive capacity. The new…

A: While calculating net income it also consider non cash expenses like depreciation, profit and loss…

Q: Phil Co. leased equipment to MNL Corp. on January 1, 2014 for an 8-year period expiring Dec. 31,…

A: Sales-lease type: It is the type of lease in which the lessor considers the lease transactions as…

Q: Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three…

A: Formula used: Interest amount = Borrowed amount x Interest rate x Time period. For calculating…

Q: tax in Barbados. He decided to buy a large  piece of land. The land was hilly, so he blasted it to…

A: Capital gains taxes are required on the earnings from the sale of most assets if they are maintained…

Q: Reward Company made the following acquisitions during the year as follows; Purchased for P5,400,000,…

A: Answer -    Working Note -  Calculation of Total Cost :  Particular Amount Purchase Price…

Q: • Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10…

A: Routine transactions, such as customer charges and supplier invoicing, should not be recorded using…

Q: P642,007.30 in b

A: Introduction Present value of bond:-

Q: At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash…

A: Formula: Bad debts expense (sales method) = Sales x uncollectible % Bad debts expense (Accounts…

Q: Beattie Inc. paid $3,600 for one year insurance effective January 1. The general ledger account…

A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…

Q: Cash-generating unit (adopted from Wiley publication) Sydney Ltd reported the following assets in…

A: Impairment loss is the reduction in the carrying value of assets that is mainly because of a decline…

Q: If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A.…

A: Introduction: Working capital: Capital used for running the day to day business transactions called…

Q: A credit report keeps track of money you borrow from banks, credit card companies, and other…

A: Loan means the amount taken from another person to be repaid back with interest.

Q: As per APES 110, an auditor may not: Select one: perform advisory services for any audit client be a…

A: Concept of Profession ethics of professional accountant as per AEPS 110

Q: On June 1, 2024, First National leased a building. The lease agreement calls for First National to…

A: Monthly interest rate = 7%/12 = 0.58333333% Number of months = 12 x 2 = 24

Q: Required: Prepare a new contribution format income statement under each of the following conditions…

A: Income Statement is a summary of all revenues, gains and all expenses and losses incurred during the…

Q: Example 20.26) The employees of a textile mill have approached the management for a raise in their…

A: Ans. What is Real wage? Real wages means the wages have been adjusted for inflation. Real wage…

Q: Dividends of $1,000 is paid in cash to the stockholder of Pizza Inc. The general ledger account…

A: Dividend is the distribution out of net income to the stockholders of a company.

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.