Pronghorn Co. decides at the beginning of 2025 to adopt the FIFO method of inventory valuation. Pronghorn had used the LIF method for financial reporting since its inception on January 1, 2023, and had maintained records adequate to apply the FIFO method retrospectively. Pronghorn concluded that FIFO is the preferable inventory method because it reports the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold. Date January 1, 2023 December 31, 2023 December 31, 2024 December 31, 2025 Other informations 2 Inventory Determined by LIFO Method $0 100 190 330 FIFO Method $0 90 250 420 Cost of Goods Sold Determined by LIFO Method FIFO Method $0 800 920 1,160 $0 810 850 1.130 For each year presented, sales are $2,960 and operating expenses are $920. Pronghorn provides two years of financial statements. Earnings per share information is not required.

Pronghorn Co. decides at the beginning of 2025 to adopt the FIFO method of inventory valuation. Pronghorn had used the LIF method for financial reporting since its inception on January 1, 2023, and had maintained records adequate to apply the FIFO method retrospectively. Pronghorn concluded that FIFO is the preferable inventory method because it reports the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold. Date January 1, 2023 December 31, 2023 December 31, 2024 December 31, 2025 Other informations 2 Inventory Determined by LIFO Method $0 100 190 330 FIFO Method $0 90 250 420 Cost of Goods Sold Determined by LIFO Method FIFO Method $0 800 920 1,160 $0 810 850 1.130 For each year presented, sales are $2,960 and operating expenses are $920. Pronghorn provides two years of financial statements. Earnings per share information is not required.

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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can you answer d
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Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $7,000; Accounts Receivable $1,900; Inventory $3,500; Common Shares $7,800; and Retained Earnings $4,600. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,340, terms 1/10, n/30, FOB shipping point. May 3 Freight charges of $137 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $3,500, terms n/30, FOB destination. The cost of the merchandise was $2,400. 7 Freight charges of $86 were paid by the appropriate party on the May 4 sale. 8. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. 11 Purchased supplies for $390 cash. 14 Received payment in full from Yip Company for…
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Use the following accounts; Cash Foreign exchange gain Foreign exchange loss Capital Bank Short-term investments Loss on sale of short-term investment Gain on sale of short-term investment RA established his own company, r@ktas Co. The following transactions are the events that occurred during December 2018, the company's first month: Date 12/1 The owner invested $ 200,000 cash for capital. 12/5 r@ktas Co., opened deposit account on Don't Trust Bank and put 2.000 Euro (Exchange rate was 1 Euro= 1,5 Dollar) 12/10 The Company purchased short-term investment with cash for $2,500. 12/18 The Company sold short-term investment with cash for $2.000 Note: • Exchange rate was 1 Euro= 1,4 Dollar at the end of the period. Requirements: 1- Give the journal entry for each transaction. 2- Post each transaction to Taccounts.