Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 10, Problem 1SSC
To determine
To prepare: The memo to explain the
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The following are selected 2025 transactions of Tamarisk Corporation.
Sept. 1
Oct. 1
Oct. 1
Purchased inventory from Encino Company on account for $48,000. Tamarisk records purchases gross and uses a
periodic inventory system.
Issued a $48,000, 12-month, 8% note to Encino in payment of account.
Borrowed $48,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $51,840 note.
Problem 1-17 (AICPA Adapted)
Regal Company sells gift certificates, redeemable for store
merchandise. The gift certificates have no expiration date.
The entity has the following information pertaining to the
gift certificate sales and redemptions: -
Unearned revenue on January 1, 2020
2020 sales
2020 redemptions of prior year sales
2020 redemptions of current year sales
750,000
-2,500,000
250,000
1,750,000
What amount should be reported as unearned revenue on
December 31, 2020?
1,250,000
b.
а.
1,125,000
1,000,000
d.
с.
500,000
Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:Historical cost : $1,000Replacement cost: $900Estimated Selling price: $ 1,050Estimated costs to complete and sell: $100Required: Write down the journal entry at end of 20181) Follow IFRS2) Follow U.S GAAP
Chapter 10 Solutions
Intermediate Accounting
Ch. 10 - How is inventory tracked under a perpetual...Ch. 10 - Barbara Wight is Chief Financial Officer at Taylor...Ch. 10 - What costs should be included in the unit cost of...Ch. 10 - When does the inventory allocation problem arise?Ch. 10 - Explain the difference between the FIFO method of...Ch. 10 - Which method of inventory results in an inventory...Ch. 10 - If unit costs are rising and inventory levels are...Ch. 10 - How can financial statements be converted from the...Ch. 10 - Explain the unit of measure under the dollar-value...Ch. 10 - What do firms use as the market value when...
Ch. 10 - Do U.S. GAAP and IFRS treat inventory write-downs...Ch. 10 - Under IFRS, how do firms determine...Ch. 10 - How does the conventional retail method...Ch. 10 - Why would a company use the gross profit method to...Ch. 10 - How are required LIFO disclosures used to compute...Ch. 10 - How does a company build LIFO layers under the...Ch. 10 - Giddens Company adopted the dollar-value UFO...Ch. 10 - The Loyd Company lad 150 units of product Omega on...Ch. 10 - Simmons, Inc. uses the lower-of-cost-or-market...Ch. 10 - Simmons, Inc. uses the lower-of-cost-or-market...Ch. 10 - The Loyd Company had 150 units of product Omega on...Ch. 10 - The Loyd Company had 150 units of product Omega on...Ch. 10 - On March 1, Year 1, LuxWear me had beginning...Ch. 10 - Types of Manufacturing Inventory. Complete the...Ch. 10 - Periodic Inventory System. Emmy Company uses a...Ch. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - FIFO, Perpetual Basis. Spider incorporated...Ch. 10 - LIFO, Perpetual Basis. Using the information...Ch. 10 - Prob. 10.8BECh. 10 - LIFO Reserve. Best Stores is considering a change...Ch. 10 - LIFO. Perpetual Basis. Source Enterprises reports...Ch. 10 - LIFO Liquidation. Using the information provided...Ch. 10 - Prob. 10.12BECh. 10 - Dollar-Value LIFO, Conversion to FIFO. Using the...Ch. 10 - Lower of Cost or Market. Count Clothing Company...Ch. 10 - Lower of Cost or Market. Using the information in...Ch. 10 - Lower of Cost or Market, IFRS. Using the...Ch. 10 - Prob. 10.17BECh. 10 - Prob. 10.18BECh. 10 - Lower of Cost or Market. Sarat Boot Company...Ch. 10 - Prob. 10.20BECh. 10 - Prob. 10.21BECh. 10 - Gross Profit Method. Sammi Company needs to...Ch. 10 - Prob. 10.23BECh. 10 - LIFO Retail Inventory Method. Complete the...Ch. 10 - LIFO Retail Inventory Method. Complete the...Ch. 10 - Moving Average, FIFO, LIFO. Arthur Lloyd...Ch. 10 - Moving Average, FIFO, LIFO, Presentation, and...Ch. 10 - Moving Average, FIFO, LIFO. Zoola, Inc. provided...Ch. 10 - Prob. 10.4ECh. 10 - LIFO, Conversion to FIFO. Inventory transactions...Ch. 10 - LIFO. Burke Company uses the LIFO perpetual method...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Lower of Cost or Market. All-Kinds-of-Cases...Ch. 10 - Prob. 10.10ECh. 10 - Lower of Cost or Market. Printmaster Distributors...Ch. 10 - Prob. 10.12ECh. 10 - Conventional Retail Inventory Method. Melvin...Ch. 10 - Gross Profit Method. A tsunami destroyed Kyoto...Ch. 10 - Prob. 10.15ECh. 10 - Dollar-Value LIFO Retail Inventory Method....Ch. 10 - Moving Average, FIFO, LIFO. Morocco Imports...Ch. 10 - Prob. 10.2PCh. 10 - Prob. 10.3PCh. 10 - Prob. 10.4PCh. 10 - Prob. 10.5PCh. 10 - Lower of Cost or Market. O'Sullivan Corporation...Ch. 10 - Conventional Retail Inventory Method. John Stevens...Ch. 10 - Prob. 10.8PCh. 10 - Prob. 10.9PCh. 10 - Prob. 1JCCh. 10 - Prob. 2JCCh. 10 - Prob. 3JCCh. 10 - Prob. 1FSACCh. 10 - Prob. 2FSACCh. 10 - Prob. 1SSCCh. 10 - Prob. 2SSCCh. 10 - Surfing the Standards Case 3: Time Shares Treasure...Ch. 10 - Surfing the Standards Case 4: Lower of Cost or...Ch. 10 - Prob. 1BCCCh. 10 - Basis for Conclusions Case 2: The Lower of Cost or...
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- 528492module item id-4943272 Bi Directions Before beginning the discussion, compute for each year Costco's: • gross margin percentage (carry to one decimal point). • return on assets percentage (carry to one decimal point). . inventory turnover ratio, and • average days to sell inventory. (Later provide your calculations when responding to a discussion question.) Costco Wholesale Corporation operated 787 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Fiscal Year Ending Fiscal Years UNCLASSIFIED W Net sales O Cost of goods sold Net income Merchandise inventory Lan Cartaale tquentami 12/31/2019 $ 152,903 132,886 hp 3,659 11.395 12/31/2018 $141,576 Discussion Questions 1. Based on Costco's gross margin and return on sales percentages, did its performance improve in 2019? Explain 123,152 3,134 11,040arrow_forwardXYZ Company's policy for the purchases of any asset over the value of $3,000 requires the purchasing clerk and purchasing manager to sign off is an example of а. general authorization. b. special authorization. С. specific authorization. d. generic authorization.arrow_forwardEffects of FIFO and LIFO Sheepskin Company sells to colleges and universities a special paper that is used for diplomas. Sheepskin typically makes one purchase of the special paper each year on January 1. Assume that Sheepskin uses a perpetual inventory system. You have the following data for the 3 years ending in 2019: Required: 1. What would the ending inventory and cost of goods sold be for each year if FIFO is used? 2. What would the ending inventory and cost of goods sold be for each year if LIFO is used? 3. CONCEPTUAL CONNECTION For each year, explain the cause of the differences in cost of goods sold under FIFO and LIFO.arrow_forward
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- 9arrow_forwardPlease Introduction and explanation please sir urgently answer please without plagiarism pleasearrow_forwardRequired information [The following information applies to the questions displayed below.] Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. Jan.15 Purchased and paid for merchandise. The invoice amount was $26,500; assume a perpetual inventory system. Apr. 1 Borrowed $700,000 from Summit Bank for general use; signed a 10-month, 6% annual interest- bearing note for the money. June14 Received a $15,000 customer deposit for services to be performed in the future. July15 Performed $3,750 of the services paid for on June 14. Dec.12 Received electric bill for $27,860. Vigeland plans to pay the bill in early January. 31 Determined wages of $15,000 were earned but not yet paid on December 31 (disregard payroll taxes). 2. Prepare the adjusting entries required on December 31. (If no entry is required for a transaction/event, select journal entry required" in the first account field.) View transaction list Journal entry worksheet…arrow_forward
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