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Please Correct answer and Do not Give solution in image format

Please Correct answer and Do not Give solution in image format

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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Please Correct answer and Do not Give solution in image format
1. Show Transcribed Text 2. Sales revenue Less: Cost of goods sold Other expenses Other data: 3. Income before income taxes Income taxes (40%) Net income Cash 2025-183,000 units @ $6.00 each Show Transcribed Text 2025-183,000 units @ $3.50 each Account Income Taxes Retained Earnings O Inventory O Cost of Goods Sold O O Purchases (all units purchased at the same price in given year): O Income for Years Ended C $ 12/31/25 $1,098,000 New amount for 2026 616,100 250,100 Inventory on hand at December 31, 2024, consisted of 48,800 units valued at $3.00 each. Sales (all units sold at the same price in a given year): 866,200 231,800 92,720 $139,080 12/31/26 Name the account(s) presented in the financial statements that would have different amounts for 2026 if LIFO rather than FIFO had been used, and state the new amount for each account that is named. $1,647,000 922,320 370,880 1,293,200 353,800 141,520 $212,280 2026-219,600 units @ $7.50 each 2026-219,600 units @ $4.40 each
Transcribed Image Text:1. Show Transcribed Text 2. Sales revenue Less: Cost of goods sold Other expenses Other data: 3. Income before income taxes Income taxes (40%) Net income Cash 2025-183,000 units @ $6.00 each Show Transcribed Text 2025-183,000 units @ $3.50 each Account Income Taxes Retained Earnings O Inventory O Cost of Goods Sold O O Purchases (all units purchased at the same price in given year): O Income for Years Ended C $ 12/31/25 $1,098,000 New amount for 2026 616,100 250,100 Inventory on hand at December 31, 2024, consisted of 48,800 units valued at $3.00 each. Sales (all units sold at the same price in a given year): 866,200 231,800 92,720 $139,080 12/31/26 Name the account(s) presented in the financial statements that would have different amounts for 2026 if LIFO rather than FIFO had been used, and state the new amount for each account that is named. $1,647,000 922,320 370,880 1,293,200 353,800 141,520 $212,280 2026-219,600 units @ $7.50 each 2026-219,600 units @ $4.40 each
The management of Blue Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2025 and 2026. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2025, and that the initial LIFO base would have been the inventory value on December 31, 2024. The following are the company's financial statements and other data for the years 2025 and 2026 when the FIFO method was employed. Cash Accounts receivable Inventory Other assets. Total assets Accounts payable Other liabilities Common stock Retained earnings Total liabilities and equity Financial Position as of 12/31/24 12/31/25 $109,800 $158,600 97,600 146,400 170,800 195.200 207,400 $549,000 $658,800 $793,000 $48.800 $73,200 $97,600 85,400 97,600 244,000 244,000 170,800 244,000 $549,000 122,000 12/31/26 $187,880 146,400 214,720 244,000 134,200 244,000 317,200 $658,800 $793,000
Transcribed Image Text:The management of Blue Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2025 and 2026. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2025, and that the initial LIFO base would have been the inventory value on December 31, 2024. The following are the company's financial statements and other data for the years 2025 and 2026 when the FIFO method was employed. Cash Accounts receivable Inventory Other assets. Total assets Accounts payable Other liabilities Common stock Retained earnings Total liabilities and equity Financial Position as of 12/31/24 12/31/25 $109,800 $158,600 97,600 146,400 170,800 195.200 207,400 $549,000 $658,800 $793,000 $48.800 $73,200 $97,600 85,400 97,600 244,000 244,000 170,800 244,000 $549,000 122,000 12/31/26 $187,880 146,400 214,720 244,000 134,200 244,000 317,200 $658,800 $793,000
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