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

ekkarill92 answered 1 year ago
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