Required information

Use the following information for the Exercises below.

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

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

Exercise 5-3 Perpetual: Inventory costing methods LO P1

Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 150 units @ $ 7.50 = $ 1,125 Jan. 10 Sales 110 units @ $ 16.50 Jan. 20 Purchase 80 units @ $ 6.50 = 520 Jan. 25 Sales 90 units @ $ 16.50 Jan. 30 Purchase 200 units @ $ 6.00 = 1,200 Totals 430 units $ 2,845 200 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Exercise 5-3 Perpetual: Inventory costing methods LO P1 Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

Use the following information for the Exercises below.

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

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

Exercise 6-3 Perpetual: Inventory costing methods LO P1

Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

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

Required:

Classifying Cash Flows
The company provided the following information.
(a)   Cash sales for the year were $50,000; sales on account totaled $60,000. (b) Cost of goods sold was $55,000. (c)   All inventory is purchased on account. (d) Depreciation on building was $31,000 for the year.
(e)   Depreciation on equipment was $2,000.
(f)   Cash collections of accounts receivable were $38,000.
(g) Cash payments on accounts payable for inventory equaled $39,000.
(h)   Rent expense paid in cash was $11,000.
(i)   20,000 shares of common stock were issued for $240,000 in cash.
(j)   Land valued at $106,000 was acquired in exchange for signing a mortgage note payable.
(k)   Equipment was purchased for cash at a cost of $84,000.
(l)   Dividends of $46,000 were declared but not yet paid.
(m) $15,000 of dividends that had been declared the previous year were paid in cash.
(n)   Interest totaling $16,000 was paid in cash during the year.
(o)   A machine used on the assembly line was sold for $12,000 in cash. The machine had a book value of $7,000.
(p) On January 1, the company entered into an operating lease to secure the use of a building having a cash price of $200,000. The first lease payment of $19,000 in cash was made on January 1.
1.   Compute cash from operating activities. 2.   Compute cash from investing activities. 3.   Compute cash from financing activities

Required information

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

Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1. 1) Acquired $1,800 cash from the issue of common stock.
2. 2) Borrowed $1,270 from a bank.
3. 3) Earned $1,450 of revenues.
4. 4) Paid expenses of $420.
5. 5) Paid a $220 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1. 1) Issued an additional $1,175 of common stock.
2. 2) Repaid $815 of its debt to the bank.
3. 3) Earned revenues of $1,600.
4. 4) Incurred expenses of $700.
5. 5) Paid dividends of $270.

What was the balance of Packard's Retained Earnings account before closing in Year 1?

Multiple Choice

• $810

• $0

• $1,030

• $1,050

with the information above....

What is the after-closing amount of retained earnings that will be reported on Packard’s balance sheet at the end of Year 2? (Assume that closing entries have been made).

Multiple Choice

• $2,080

• $1,710

• $1,440

• $2,275

_______________________________________________________________

The following entry is taken from the journal of a merchandising company:

What is the effect of this entry on the company’s financial statements?

Multiple Choice

• Assets and stockholders’ equity increase.

• Assets and liabilities increase.

• Assets and stockholders’ equity decrease.

• Assets decrease and stockholders’ equity increases.

Novak Cole Inc. acquired the following assets in January of 2018.

The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method.

Pepper Company acquired all of Salt Corporation’s outstanding shares on December

    31, 2017 for $750,000 cash.  Pepper will operate Salt as a wholly owned

    subsidiary with a separate legal and accounting identity.  Although many of Salt’s

    book values approximate fair values, several of its accounts have a fair values that

    differ from book values.  In addition, Salt has internally developed assets that remain

    unrecorded on its books.  In deriving the acquisition price, Pepper assessed Salt’s

    fair and book value differences as follows:

Required:  Complete the consolidation worksheet for Pepper and Salt at December 31, 2017.

Brief Exercise 15-17 Lessor; effect on earnings; Type B lease