Question
In: Accounting
1. During periods of rising prices, a perpetual inventory system would result in the same dollar...
1. During periods of rising prices, a perpetual
inventory system would result in the same dollar amount of ending
inventory as a periodic inventory system under which of the
following inventory cost flow methods?
|
Average Cost |
LIFO |
A.
Yes
No
B.
Yes
Yes
C.
No
No
D.
No Yes
2. For Sandhill Co., the following information is
available:
|
Capitalized leases |
$570,000 |
||
|
Copyrights |
244,000 |
||
|
Long-term receivables |
216,000 |
In Sandhill’s balance sheet, intangible assets
should be reported at
A. $786,000
B. $814,000
C. $216,000
D. $244,000
3. Presented below are data for Wildhorse
Co.
|
2017 |
2018 |
|||||
|
Assets, January 1 |
$8,855 |
$9,717 |
||||
|
Liabilities, January 1 |
4,870 |
? |
||||
|
Stockholders' Equity, Jan. 1 |
? |
? |
||||
|
Dividends |
1,611 |
1,219 |
||||
|
Common Stock |
1,456 |
1,304 |
||||
|
Stockholders' Equity, Dec. 31 |
? |
? |
||||
|
Net Income |
1,910 |
1,306 |
||||
Stockholders' Equity at January 1, 2018
is
A. $5,740
B. $3,985
C. $4,284
D. $5,895
Solutions
Expert Solution
| Ans.1 | C | No No | |||||||||
| During periods of rising prices, a perpetual inventory system would result in the same dollar amount | |||||||||||
| of ending inventory as a periodic inventory system under only FIFO cost flow method. | |||||||||||
| Ans.2 | D $244000 | ||||||||||
| Asssets | Type of assets | ||||||||||
| Capitalized leases | Tangible fixed assets | ||||||||||
| Copyrights | Intangible fixed | ||||||||||
| Long term receivales | Long term asssets | ||||||||||
| Ans.3 | A $5740 | ||||||||||
| *Caluclation: | |||||||||||
| Beginning stockholder's equity of 2018 will equal to the ending stockholder's equity of 2017 | |||||||||||
| So we will calculate the stockholder's equity dec 31 2017 | |||||||||||
| Stockholder's equity (ending) = Net income + Beginning stockholder's equity + Common stock - Dividend | |||||||||||
| 1910 + 3985 + 1456 - 1611 | |||||||||||
| 5740 | |||||||||||
| *Beginning stockholder's equity = Assets - Liabilities | |||||||||||
| 8855 - 4870 | |||||||||||
| 3985 | |||||||||||
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