Dent Company has the following inventory information:

                                      Inventory at   

            Year        year-end prices (FIFO)                            Price Index

            2017(base)               $180,000                                   1.00

            2018                           252,000                                   1.05

            2019                           368,000                                   1.15

            2020                           387,500                                   1.25

Instructions

Using the dollar-value LIFO method, compute the ending inventory value for each year.

SHOW ALL THE STEPS YOU USED TO ARRIVE AT THE FINAL ANSWER.

Answers:

2017 $_______________

2018 $_______________

2019 $_______________

2020 $_______________

Based on your answers from above, record the journal entry required to adjust the inventory to dollar-value LIFO for 2018 and 2019 only

Abardeen Corp. borrowed $90,000 from the bank on October 1, 2018. The note had an 8% annual rate of interest and matured on March 31, 2019. Interest and {rincipal were paid in cash on the maturity date.

a). What amount of cash did Abardeen pay for interest in 2018

b). What amount of interest expense was recognized on the 2018 income statement?

c). What amount of total liabilities was reported on December 31, 2018, balance sheet?

d). What total amount of cash was paid to the bank on March 31, 2019, for principal and interest?

e). What amount of interest expense was reported on the 2019 income statement

On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $60,000 with an estimated residual value of $5,000.

a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2018.

a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2018.

a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2018.

Edwards Company contracted on 4/1/17 to construct a building for $4,800,000. The project was completed in 2019. Additional data follow: 2017 2018 2019 Costs incurred to date $1,120,000 $2,700,000 $3,800,000 Estimated cost to complete 2,080,000 900,000 — Billings to date 1,000,000 3,800,000 4,800,000 Collections to date 800,000 2,600,000 4,400,000 Instructions (a) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2017, 2018, and 2019. (b) Prepare all necessary entries for the year 2018. (c) Present the balance sheet disclosures at December 31, 2018. Proper headings or subheadings must be indicated.

a) Toole Company had the following transactions during 2017:

Sales of $9,200 on account

Collected $6,000 for services to be performed in 2018

Paid $1,580 cash in salaries

Purchased airline tickets for $550 in December for a trip to take place in 2018

What is Toole’s 2017 net income using accrual accounting?

b) Toole Company had the following transactions during 2017:

Sales of $4,200 on account

Collected $6,600 for services to be performed in 2018

Paid $1,630 cash in salaries

Purchased airline tickets for $350 in December for a trip to take place in 2018

What is Toole’s 2017 net income using cash basis accounting?

On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $90,000 with an estimated residual value of $7,000.

a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2018.

a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2018.

a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2018.

A company bought a machine on January 1, 2017 for use in operations. The machine cost $35,000 and the estimated residual value was $3,000. The machine has useful life of 3 years and produced 15,000 during 2017, 20,000 units during 2018 and 25,000 during 2019. Compute the depreciation expense under the straight line method for 2017, 2018 and 2019. Compute the depreciation under the units of production method for 2017, 2018 and 2019. Compute the depreciation under the double declining balance method for 2017, 2018 and 2019. Show the book value at the end of each year under the three methods. Show your work.

1.

Aneko Company reports the following ($000s): net sales of $13,000 for 2018 and $12,350 for 2017; end-of-year total assets of $16,200 for 2018 and $13,800 for 2017.

Compute its total asset turnover for 2018. (Enter your answers in thousands.)

2.

Assume a company’s equipment carries a book value of $48,000 ($49,500 cost less $1,500 accumulated depreciation) and a fair value of $44,250, and that the $3,750 decline in fair value in comparison to the book value meets the impairment test.

Prepare the entry to record this $3,750 impairment.

3.

A fleet of refrigerated delivery trucks is acquired on January 5, 2018, at a cost of $1,010,000 with an estimated useful life of 8 years and an estimated salvage value of $90,900.

Compute the depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest whole dollar.)

4.

Required information

[The following information applies to the questions displayed below.]

On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $68,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.

Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged.

Compute the revised depreciation for both the second and third years.

5.

Required information

[The following information applies to the questions displayed below.]

On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $68,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.

Compute the year 2018 depreciation using the units-of-production method.

6.

Required information

[The following information applies to the questions displayed below.]

On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $68,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.

Compute the year 2018 depreciation using the straight-line method.