FINANCIAL&MANAGERIAL ACCOUNTING(LL)W/AC
FINANCIAL&MANAGERIAL ACCOUNTING(LL)W/AC
15th Edition
ISBN: 9781337955447
Author: WARREN/TAYLOR
Publisher: CENGAGE L
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Chapter D, Problem 7E

(a)

To determine

Journalize the stock investment transactions for Company S, under the equity method.

(b)

To determine

Determine the balance of the investment-Company F stock account, as of December 31, 20Y6.

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Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.
Vanguard Enterprises prepared its financial statements for 2020 based on the information below. The company had cash of $2,300, inventory of $19,400, and accounts receivables of $8,100. The company's net fixed assets were $55,000, and other assets were $4,500. It had accounts payable of $13,700, notes payable of $5,500, common stock of $30,000, and retained earnings of $17,200. How much long-term debt did the firm have?
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