ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
Author: Christensen
Publisher: MCG
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Chapter 13, Problem 13.15Q

Maness Company made a change in accounting for its inventories during the third quarter of its fiscal year. The company switched from the LIFO method to the average cost method. Describethe reporting of this accounting change on prior interim financial statements and on third-quarter interim financial statements.

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Jackson Specialties has been in business for more than 50 years. The company maintains a per-petual inventory system, uses a LIFO flow assumption, and ends its fiscal year at December 31. At year-end, the cost of goods sold and inventory are adjusted to reflect periodic LIFO costingprocedures.A railroad strike has delayed the arrival of purchases ordered during the past several months of2011, and Jackson Specialties has not been able to replenish its inventories as merchandise is sold. At December 22, one product appears in the company’s perpetual inventory records at the follow-ing unit costs: Purchase Date Quantity Unit Cost Total CostNov. 14, 1958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 $6 $18,000Apr. 12, 1959 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 8 16,000Available for sale at Dec. 22, 2011. . . . . . . . . . . . . . . . 5,000 $34,000 Jackson Specialties has another 8,000 units of this product on order at the current…
Based on the information, Determine the adjusted balances of Inventory,Accounts receivable,Sales,Purchases and net income.
Data for adjustments at December 31, 2015, are listed below and the unadjusted trial balance at the top of the following page. (a)Taipei International uses a perpetual inventory system.(b)An analysis of Accounts Receivable reveals that the appropriate year-end balance in Allowance for Bad Debts is $750 .(c)Equipment depreciation for the year totaled $32,000 .(d)A recheck of the inventory count revealed that goods costing $5,600 were wrongly excluded from ending inventory. The goods in question were not shipped until January 3, 2016. A related receivable for $8,200 was also mistakenly recorded.(e)Interest on the note payable has not been accrued. The note was issued on March 1, 2015, and the interest rate is 12% .(f)The balance in Insurance Expense represents $3,000 that was paid for a one-year policy on October 1. The policy went into effect on October 1.(g)Dividends totaling $7,800 were declared on December 25. The dividends will not be paid until January 15, 2016. No entry was…

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ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS

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