Smart Company prepared its annual financial statements dated December 31, 2020. The company applies the FIFO inv method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 202 earnings follows: Sales revenue Cost of sales Beginning inventory Purchases Cost of goods available for sale Ending inventory (FIFO cost) Cost of sales Gross profit Operating expenses Pretax earnings $32,300 197,000 229,300 68,496 $293,000 160,804 132, 196 63,300 68.896

Smart Company prepared its annual financial statements dated December 31, 2020. The company applies the FIFO inv method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 202 earnings follows: Sales revenue Cost of sales Beginning inventory Purchases Cost of goods available for sale Ending inventory (FIFO cost) Cost of sales Gross profit Operating expenses Pretax earnings $32,300 197,000 229,300 68,496 $293,000 160,804 132, 196 63,300 68.896

Name: Required:1. Restate the statement of earnings to reflect the valuatio
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Description: Required:1. Restate the statement of earnings to reflect the valuation of the ending inventory on December 31, 2020, at the LC&NRV. Apply theLC&NRV rule on an item-by-item basis.Sales revenueCost of sales:Beginning inventoryPurchasesCost of goods av

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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