Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data:

Required:
Assuming the price level increased from 1 at January 1 to 1.50 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter your answers in thousands.)

closing entries are prepared for which of the following reasons...???
a) To get the journal ready for the next accounting period
b) To get financial statements ready for next accounting period
3) To get the worksheet ready for the next accounting pey
4) To get the accounts ready for the next accounting period

In January, Arco Company purchased the rights to a natural resource for $3,000,000. The estimated recoverable units from the natural resource amount to 3,000,000 units. During the year, Arco sold 100,000 units of the natural resource at $6 per unit and incurred operating costs other than depletion of $4.50 per unit. Assume a 15 percent specified depletion percentage. Based on these facts, compute the company's depletion deduction using both cost depletion and percentage depletion and choosing the higher figure.

How can the culture of an organization contribute to overall employee satisfaction? What elements contribute to the overall culture of an organization?

Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: Beginning Inventory Ending Inventory Raw materials inventory $ 138,000 $ 277,000 Work in process inventory—Weaving 335,000 350,000 Work in process inventory—Sewing 630,000 800,000 Finished goods inventory 1,306,000 1,316,000 The following additional information describes the company’s manufacturing activities for June: Raw materials purchases (on credit) $ 700,000 Factory wages cost (paid in cash) 3,440,000 Other factory overhead cost (Other Accounts credited) 162,000 Materials used Direct—Weaving $ 274,000 Direct—Sewing 117,000 Indirect 172,000 Labor used Direct—Weaving $ 1,400,000 Direct—Sewing 485,000 Indirect 1,500,000 Overhead rates as a percent of direct labor Weaving 90 % Sewing 150 % Sales (on credit) $ 4,050,000 1. Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and (c) cost of goods sold. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, and (c) sale of finished goods.

Accountants generally follow the lower of cost or market (LCM) basis of inventory valuations. a. Define cost as applied to the valuation of inventories b. Define market as applied to the valuation of inventories. c. Why are inventoies valued at the lower of cost or market? d. List the arguments against the use of the LCM method of valuing inventories.

Accountants have advocated two types of income statements based on differing views of the concept of income: the current operating performance and all-inclusive concepts of income. How would the following items be handled under each concept? 1. Cost of Goods Sold 2. Selling expenses 3. Prior period Adjustments

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,930 $ 6 For the current year: Purchase, March 21 6,010 5 Purchase, August 1 4,120 3 Inventory, December 31, current year 2,900 Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.

Macondo, Inc. is a wholesaler located in Aguadilla. During its current fiscal year, ended December 31, 2019, Macondo Inc. completed the following selected transactions:

Feb. 3 Purchased 2,500 shares of its own common stock at $26, recording the stock at cost. (Prior to the purchase, there were 40,000 shares of $20 par common stock outstanding.

May 1 Declared a semiannual dividend of $1 on the 10,000 shares of preferred stock a $.30 dividend on the common stock to stockholders of record on May 31, payable on June 15.

June 15 Paid the cash dividends.

Sept. 23 Sold 1,000 shares of treasury stock at $28, receiving cash.

Nov. 1 Declared semiannual dividends of $1 on the preferred and $.30 declared on the common stock, In addition, a 5% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimate at $30.

Dec. 1 Paid the cash dividends and issued the certificates for the common stock dividend.

Instructions: Journalize the transactions.

2. What if the U.S. tax structure moved away from taxing income to taxing the value a company added? Do you think Apple would prefer:

(a) tax on income (at 2018 rate)

(b) a Value Add Tax (VAT) (enacted in other countries and being considered for the U.S.)

and/or (c) goods and services taxes (GST)?

Gary Theater is in the Hoosier Mall. A cashier's booth is located near the entrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 p.m., the other from 5:00 to 9:00 p.m. Each cashier is bonded. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier's shift. After purchasing a ticket, the customer takes the ticket to a doorperson stationed at the entrance of the theater lobby some 60 feet from the cashier's booth. The doorperson tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the doorperson. At the end of each cashier's shift, the theater manager removes the ticket rolls from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. In addition, the manager sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company's accounting department. Receipts from the first shift are stored in a safe located in the manager's office. (a)Identify the internal control principles and their application to the cash receipts transactions of Gary Theater. (b)If the doorperson and cashier decided to collaborate to misappropriate cash, what actions might they take?

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:

*Allocated on the basis of sales dollars.

Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.

Required:

1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?

2. Should the production and sale of racing bikes be discontinued?

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines.

Outline five (5) reasons for the discrepancy between the cash book and the bank statement.