Monthly Archives: April 2012

E10-12 (Entries for Asset Acquisition, Including Self-Construction) Below are transactions related to Impala company

E10-12 (Entries for Asset Acquisition, Including Self-Construction) Below are transactions related to Impala company. (a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The market value of this land is determined to … Continue reading

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E10-5 (Treatment of Various Costs) Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment

E10-5 (Treatment of Various Costs) Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company’s fee for title search $ 520 Architect’s fees 3,170 Cash paid for … Continue reading

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E9-12 (Gross Profit Method) Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes

E9-12 (Gross Profit Method) Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales 1,000,000 Sales … Continue reading

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E9-1 (Lower-of-Cost-or-Market) The inventory of Oheto Company on December 31, 2011, consists of the following items

E9-1 (Lower-of-Cost-or-Market) The inventory of Oheto Company on December 31, 2011, consists of the following items. Part No. Quantity Cost per Unit Cost to Replace per Unit 110 600 $95 $100 111 1,000 60 52 112 500 80 76 113 … Continue reading

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P7-1 (Determine Proper Cash Balance) Francis Equipment Co. closes its books regularly on December 31, but at the end of 2010 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes

P7-1 (Determine Proper Cash Balance) Francis Equipment Co. closes its books regularly on December 31, but at the end of 2010 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. … Continue reading

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E8-25 (Dollar-Value LIFO) Presented below is information related to Martin Company

E8-25 (Dollar-Value LIFO) Presented below is information related to Martin Company. Ending Inventory Price Date (End-of-Year Prices) Index December 31, 2007 $ 80,000 100 December 31, 2008 111,300 105 December 31, 2009 108,000 120 December 31, 2010 122,200 130 December … Continue reading

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E8-14 (FIFO, LIFO, and Average Cost Determination) LoBianco Company’s record of transactions for the month of April was as follows

E8-14 (FIFO, LIFO, and Average Cost Determination) LoBianco Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 600 @ $6.00 April 3 500 @ $10.00 4 1,500 @ 6.08 9 … Continue reading

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E8-5 (Inventoriable Costs—Error Adjustments) Werth Company asks you to review its December 31, 2010, inventory values and prepare the necessary adjustments to the books

E8-5 (Inventoriable Costs—Error Adjustments) Werth Company asks you to review its December 31, 2010, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Werth uses the periodic method of recording inventory. … Continue reading

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E7-8 (Recording Bad Debts) At the end of 2010 Sorter Company has accounts receivable of $900,000 and an allowance for doubtful accounts of $40,000

E7-8 (Recording Bad Debts) At the end of 2010 Sorter Company has accounts receivable of $900,000 and an allowance for doubtful accounts of $40,000. On January 16, 2011, Sorter Company determined that its receivable from Ordonez Company of $8,000 will … Continue reading

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Howell Auto Parts is considering whether to borrow funds and purchase an asset or to lease the asset under an operating lease arrangement

Lease versus purchase decision (LO4) Howell Auto Parts is considering whether to borrow funds and purchase an asset or to lease the asset under an operating lease arrangement. If the company purchases the asset, the cost will be $10,000. It … Continue reading

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