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On 1 January 20X1, Tyler Trading Corp. was incorporated by Jim Tyler, who owned all the common shares. His original investment was $100,000. Inventory transactions over the subsequent three years were as follows: 02 January 20x1 Throughout 20x1 31 December 20X1 15 July 20X2 Throughout 20x2 31 December 20X2 Throughout 20x3 Purchased 20 units for resale at $5,000 each. Sold 12 units for an average of $8,000 each. Remaining eight units have a selling market value of $6,000 each. Bought six units for resale at $7,000 each. Sold nine units at an average of $12,000 each. Remaining five units have a selling market value of $10,000 each. Sold all five remaining units at $9,000 each. Required: 1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO.

On 1 January 20X1, Tyler Trading Corp. was incorporated by Jim Tyler, who owned all the common shares. His original investment was $100,000. Inventory transactions over the subsequent three years were as follows: 02 January 20x1 Throughout 20x1 31 December 20X1 15 July 20X2 Throughout 20x2 31 December 20X2 Throughout 20x3 Purchased 20 units for resale at $5,000 each. Sold 12 units for an average of $8,000 each. Remaining eight units have a selling market value of $6,000 each. Bought six units for resale at $7,000 each. Sold nine units at an average of $12,000 each. Remaining five units have a selling market value of $10,000 each. Sold all five remaining units at $9,000 each. Required: 1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 1 January 20X1, Tyler Trading Corp. was incorporated by Jim Tyler, who owned all the common shares. His original investment was $100,000. Inventory transactions over the subsequent three years were as follows: 02 January 20x1 Throughout 20x1 31 December 20X1 15 July 20X2 Throughout 20x2 31 December 20x2 Throughout 20x3 Accounting Income 20X1 20X2 20X3 Total Required: 1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO. $ Purchased 20 units for resale at $5,000 each. Sold 12 units for an average of $8,000 each. Remaining eight units have a selling market value of $6,000 each. Bought six units for resale at $7,000 each. 0 Sold nine units at an average of $12,000 each. Remaining five units have a selling market value of $10,000 each. Sold all five remaining units at $9,000 each.
Transcribed Image Text:On 1 January 20X1, Tyler Trading Corp. was incorporated by Jim Tyler, who owned all the common shares. His original investment was $100,000. Inventory transactions over the subsequent three years were as follows: 02 January 20x1 Throughout 20x1 31 December 20X1 15 July 20X2 Throughout 20x2 31 December 20x2 Throughout 20x3 Accounting Income 20X1 20X2 20X3 Total Required: 1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO. $ Purchased 20 units for resale at $5,000 each. Sold 12 units for an average of $8,000 each. Remaining eight units have a selling market value of $6,000 each. Bought six units for resale at $7,000 each. 0 Sold nine units at an average of $12,000 each. Remaining five units have a selling market value of $10,000 each. Sold all five remaining units at $9,000 each.
1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO. Accounting Income 20X1 20X2 20X3 Total S 2. Calculate economic income, based on events or changes in value, for 20X1, 20X2, and 20X3. (Enter negative values with minus sign.) 20X1 20X2 20x3 Total 0 Economic Income. S 0
Transcribed Image Text:1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO. Accounting Income 20X1 20X2 20X3 Total S 2. Calculate economic income, based on events or changes in value, for 20X1, 20X2, and 20X3. (Enter negative values with minus sign.) 20X1 20X2 20x3 Total 0 Economic Income. S 0
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