Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018: Historical cost : $1,000 Replacement cost: $900 Estimated Selling price: $ 1,050 Estimated costs to complete and sell: $100 Required: Write down the journal entry at end of 2018 1) Follow IFRS 2) Follow U.S GAAP
Q: Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet…
A: Total Actual quantity = 4,536 + 3,864 = 8,400 Budgeted sales mix ratio = 3,970 : 3,970 = 1:1 Revised…
Q: Using Use the data given in Exercise 12-9, except assume that on November 1, Sitco Products entered…
A: Speculation Forward Contract: The contract which pursue the counterparties to buy or sell an assets…
Q: The following financial statement information for Peal Company as for the year 2021: Required Fill…
A: Pearl Company Income Statement For the year ended 2021 Net Sales $20,000 Cost of Goods…
Q: Suppose you are the buyer for the housewares department of a department store. A number of vendors…
A: Net price = Price ×(1-discount rate)
Q: Enticement Co currently expects sales of $50,000 a month. Variable costs of sales are $40,000 a…
A: In the purview of the question, we are required to compute the increase in accounts receivable,…
Q: Use the following information for the next 2 items:2022 Formula One Championship pre-season testing…
A: Goodwill is the gap between the acquisition price paid for an acquiree and the price not ascribed to…
Q: If E=P28,091.16 and N = P11,213.00, what is the value of D? Note: E= Total Earnings D- Deduction N =…
A: Formula: Net pay = Total Earnings - Deductions
Q: What is an example of project plan proposal?
A: It is an attempt to implement desired change to an environment in a controlled way. By using…
Q: Hart Company made 3,180 shelves using 22,180 pounds of wood costing $288,340. The company's direct…
A: Variances are the calculation of the difference between the actual performance and standard…
Q: Moving Question 13 A company entered into the following transactions. Match each transaction with…
A: The special journals are classified as purchase Journal, cash receipt journal, cash payment Journal…
Q: Superior has provided the following information for its recent year of operation: The common stock…
A: The ownership of the corporation is represented by common stock, which is a sort of investment. The…
Q: K1 and K2 are partners who have capital balances of P95,000 and P65,000 and who share profits 60%…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Bergo Bay's accounting system generated the following account balances on December 31. The company's…
A: If the actual overhead incurred is more than the applied overhead the overhead is said to be under…
Q: Item No. 23 is based on the following information: Mar, Tee, Nee, and Kho, sharing profits in the…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Research & Development. Edwards Corporation purchases a building for $2,000,000 which is to be used…
A: Research and development expenses (R&D) refers to those expenditure which are related to the…
Q: EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the…
A:
Q: Synergy Incorporated, a US based Multinational Company (MNC) manufacturing electrical appliances.…
A: Answer:- Net present value meaning:- A set of cash flows happening at different dates is given a…
Q: following linancial statement information for Peal Company as for the year 2021: Required: Fill the…
A: Peal Company Income Statement For the year ended 2021 Net Sales $12,000 COGS (i.e.…
Q: A scheduled payment of $5,500 due in one year is to be replaced with two payments: the first due in…
A: Time value of money shows that the money available today is worth than the money in the future.
Q: PB13. LO 4.3 Prepare adjusting journal entries, as needed, considering the account balances…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Per Unit Iten Unite Cont Car audio equipment Speakers Stereos 341 $.96 256 117 Amplifiers 322 92…
A: In LCM if the market value is less than cost then loss will be recorded but in case of market value…
Q: PA4-1 Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance (L04-3,…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. The…
Q: Compute the net profit if, Service Revenue OMR 110,000; Other income OMR12,000; salary Expenses OMR…
A: Theory concept: Net profit: Net profit is a income statement item. In income statement all the items…
Q: The net gain (loss) for the three-month period ending March 31 is * SG Company has been undergoing…
A: Statement of Realization and Liquidation: In case of bankruptcy, the court wants this statement so…
Q: On December 31, 2021, Precious Company sold an equipment with carrying amount of P2,000,000 and…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: 1. Differentiate Income Taxation and Business Taxation using in the areas that do not overlap. 2.…
A: Taxation refers to the means through which government or the authority of taxation imposes the tax…
Q: Spherical Manufacturing recently spent $11 million to purchase some equipment used in the…
A: Here asked for multi sub part question we will solve for first three sub part question as per Q/A…
Q: The management of Sheridan Company is trying to decide whether it can increase its dividend. During…
A: The cash flow statement is prepared to record the cash flow from various activities such as…
Q: A recent statement of cash flows for Colgate-Palmolive reported the following information (dollars…
A: Cash Flow Statement is one of the financial statement which shows the movement of cash during the…
Q: Red Company allocates research and development costs to its three research facilities based on each…
A: Total Research & Development cost = $40,000,000 Total revenue = $250,000,000 Allocation rate =…
Q: a. Complete an amortization schedule for a $19,000 loan to be repaid in equal installments at the…
A: The amortization schedule represents how the principal balance on the loan will be repaid over the…
Q: ephen purchased a rental property on 03 August 2020 and has rented the property from this date. He…
A: Requirement: In the given problem you are asked to calculate the claim of borrowing cost for 2021.
Q: Lorna, Aida, and Fe decided to liquidate their partnership on August 2pm 31, 2020. They have been…
A: Non cash assets means the assets other than cash and bank balances. Any amount received more or less…
Q: For the next five (5) questions: On January 1, 2022, when the prevailing market rate on similar…
A: Investment to be recycled means that the investments are to be reclassified or there lies any…
Q: 300 31 Factory overhead X
A: The manufacturing overhead rate is the standard amount of factory overhead cost attributed to each…
Q: The following balance sheet accounts were taken from the partnership of ABC Co. on March 31, 2015:…
A: Liquidation means where the business of firm is closed down , assets are sold out and liabilities…
Q: The cost of production of completed and transferred goods during the period amounted to $540,000,…
A: If the goods are transferred from one department to another department, then the receiver department…
Q: Research & Development. Edwards Corporation purchases a building for $2,000,000 which is to be used…
A: Introduction: Cost Plus Profit basis: A contract for research to be completed on a cost-plus basis…
Q: June 1, 2022, when the prevailing market rate on similar instruments was at 14%, ABC Company…
A: An interest of 12% is paid every on every May 31. Date of purchase of bond = June 1 ,2022 Purchase…
Q: Compute the net profit if, Service Revenue OMR 110,000; Other income OMR12,000; salary Expenses OMR…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: py the answer)The manager of a canned-food processing plant has two labeling machine options. On the…
A: Explanation of Concept Annual Worth method is been used for decision making where two assets is been…
Q: Christian and Dior are partners, who share profits equally, were incapacitated due to a car…
A: Cash available after expenses and payments = P35,000 - P19,000 - P10,000 = P6,000 Capital after…
Q: Calculate Cost of Goods sold from the following? Opening stock OMR 20000, Carriage outwards OMR…
A: Formula: Deduction of closing stock from Opening stock and purchases derives the cost of goods sold.…
Q: Compute the net profit if, Service Revenue OMR 110,000; Other income OMR12,000; salary Expenses OMR…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Q10 Empty Company maintains no inventories and has the following data pertaining to one of its…
A: The variance is the difference between the actual data and standard output of the production.
Q: If Pierce is to receive a final settlement of P 180,000, how much should be the proceeds from sale…
A: If Pierce is to receive a final settlement of P 180,000, proceeds from the sale of the non-cash…
Q: A company reports the following: Net income $318,000 Preferred dividends $18,000 Shares of common…
A: Formula to be used :- Earnings per share = ( Net income - Preferred dividends ) / Shares of common…
Q: Why did the solvency status of Mia did not affect the cash distributed to Kia? Why no.26 & no.27…
A: Solvency refers to the company ability for meeting the financial obligations as well as the long…
Q: The following are the assets and liabilities of Tee, Pak, and Long artnership on April 30, 200B…
A: Under piecemeal distribution, payments are made to creditors and partners as and when assets are…
Q: Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for…
A: Consolidated balance sheet is the vital financial statement (FS) under the case of the group…
Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:
Historical cost : $1,000
Replacement cost: $900
Estimated Selling price: $ 1,050
Estimated costs to complete and sell: $100
Required: Write down the
1) Follow IFRS
2) Follow U.S GAAP
Step by step
Solved in 3 steps
- Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses a perpetual inventory system and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Explain any differences in inventory valuation and income between the two methods.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 inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
- 6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information about inventory stocked for regular sale follows: Item A B C D Quantity on Hand 80 35 40 75 Unit Cost When Acquired €50 €20 €50 €40 Market Value at year end €30 €25 €80 €20 a) Compute the valuation for the December 31, 2022, inventory using the lower-of-cost-or-net realizable value basis and make necessary adjusting journal entries. b) Sold 15 units of A for €20 in cash, 3 units of B for €30 and 10 units of C for €75 cach in cash and written-off 5 units of D. Make necessary journal entries. 7. Improvements were made to the leased warehouse on June 01, 2021 at a cost of $ 22,000. The estimated life of the improvement is ten years. Lease contract terminates on December 31, 2025. Make necessary entries as of 31.12.2021 and 31.12.2022.6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information about inventory stocked for regular sale follows: Unit Cost When Acquired Item A B C D Quantity on Hand 80 35 40 75 €50 €20 €50 €40 Market Value at year end €30 €25 €80 €20 a) Compute the valuation for the December 31, 2022, inventory using the lower-of-cost-or-net realizable value basis and make necessary adjusting journal entries. b) Sold 15 units of A for €20 in cash, 3 units of B for €30 and 10 units of C for €75 each in cash and written-off 5 units of D. Make necessary journal entries.Corrs Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below. 00Cost00 Lower-of-Cost-or-Market 12/31/19 $356,000 $327,00000000 12/31/20 420,000 395,00000000 Instructions a. Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. b. Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). c. Which of the two methods above provides the higher net income in each year?
- Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $130,000 $110,000 12/31/2021 230,000 265,000JBD, Inc. has the following information pertaining to it 2025 ending inventory. Requirements: Calculate the value of ending inventory using the following methods: LCM for each individual inventory item LCM for aggregated inventory. Record any necessary journal entries for each of the above methods, assuming the amount is material. Explain the purpose of applying the LCM rule to inventory Item Quantity Cost per Each Market Cost per Each Records Market LCM Each LCM Total R55 300 10 7.5 S49 150 15 12 T21 350 8 6 E33 600 33 35 Date Account Debit CreditRiegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2019, consists of products D, E, F, G, and H. Relevant per-unit data for these products appear below. Item D E F G H Estimated selling price €125 € 115 € 85 € 95 € 100 Cost 77 82 70 50 55 Cost to complete 30 30 25 35 30 Selling costs 10 18 10 20 10 Instructions: Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2019, for each of the inventory items above.
- D Company began operations in 2018 and determined its ending inventory at cost and at a LCNRVat December 31,2018 and December 31, 2019. This information is presented below.Cost NRV12/31/18 520,000 485,00012/31/19 615,000 585,000Required1. Prepare journal entries required at December 31,2018 and December 31, 2019, assumingthat the inventory is recorded at LCNRV, using a perpetual inventory system and the costof goods sold method.2. Prepare journal entries required at December 31,2018 and December 31, 2019, assumingthat the inventory is recorded at LCNRV, using a perpetual inventory system and the lossmethod.3. Which of the two methods above provides the higher income in each year ?Ret Exercise 8-27 (Algo) Dollar-value LIFO (LO8-8] Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Ending Inventory at Year Year-End Costs Base Year Costs 2022 2023 $233,100 302,450 303,600 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.) X Answer is not complete. Inventory Layers Converted to Base Year Cost Inventory DVL Cost Inventory Layers Converted to Cost Inventory at Year-End Cost Year- End Cost Index Inventory Layers at Base Year Inventory Layers at Base Year Cost Year- Inventory Layers Converted to Cost Date End Cost Index Cost 12/31/2021 220,000 X 273,000 X I$ 1 220,000 X Base IS 220,000 8 220,000 S 220,000 12/31/2022 1.05 $ 260,000 Base…TRANSACTIONS DURING January 2019 Cost (OMR) Amount (OMR) 3000 3000 Date Particulars Units Beginning Inventory 300 200 10 15 January 1 January 2 January 11 Purchase January 18 Purchase Purchase 100 17 1700 300 20 6000 Total Purchase 900 13,700 Date Particulars Units Cost (OMR) Amount (OMR) January 8 Sales 300 30 9000 January 15 Sales 250 40 10000 Total Sales 550 19000 Required a) How would issues and closing inventory be valued using FIFO b) Give journal entry assuming that if the business follows perpetual inventory method