Kingbird Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. 12/31/24 $333,440 12/31/25 422,600 Date Cost 12/31/24 (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account title and enter o for the amounts. Record journal entries in the order presented in the problem.) 12/31/25 Lower-of-Cost-or-Market $314,890 407,700 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to Market Cost of Goods Sold Debit 18550 TI 3650 Credit 185 365 (b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Kingbird Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. 12/31/24 $333,440 12/31/25 422,600 Date Cost 12/31/24 (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account title and enter o for the amounts. Record journal entries in the order presented in the problem.) 12/31/25 Lower-of-Cost-or-Market $314,890 407,700 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to Market Cost of Goods Sold Debit 18550 TI 3650 Credit 185 365 (b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ff.101.
Transcribed Image Text:Kingbird Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at
December 31, 2024, and December 31, 2025. This information is presented below.
12/31/24 $333,440
12/31/25
422,600
Date
Cost
12/31/24
(a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at
market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account title
and enter O for the amounts. Record journal entries in the order presented in the problem.)
12/31/25
Lower-of-Cost-or-Market
$314,890
407,700
Account Titles and Explanation
Cost of Goods Sold
Allowance to Reduce Inventory to Market
Allowance to Reduce Inventory to Market
Cost of Goods Sold
Debit
18550
3650
Credit
1855
3650
(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at
market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the
amounts. Record journal entries in the order presented in the problem.)
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