XYZ, Inc., is a retailer that sells kitchen appliances. On Dec. 30, 2015, a customer stopped by a store to order a $750 dishwasher and paid cash. XYZ will deliver the dishwasher to the customer on Jan. 15, 2016. XYZ's fiscal year end is Dec. 31. What should XYZ record for this transaction in its 2015 financial statements?

$750 in revenue

$750 in unearned revenue

Neither revenue nor unearned revenue

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Question 81 pts

XYZ Construction Corporation contracted to construct a building for $2,400,000. Construction began in 2014 and was completed in 2015. Data relating to the contract are summarized below:

Year ended December 31, 2014 2015

Costs incurred $960,000 $720,000

Estimated costs to complete 640,000 0

XYZ uses the percentage-of-completion method as the basis for income recognition. For the year ended December 31, 2014, XYZ should report gross profit (i.e., Revenue - Cost of Goods Sold) of

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Question 91 pts

At the end of the fourth quarter (Q4), XYZ had $80,000 in accounts receivable outstanding. However, based on past experience, it only expected to collect $72,000 in cash from those receivables. XYZ began Q4 with an allowance for doubtful accounts balance of $7,000 and during the quarter wrote off $2,000 in accounts that it determined to be uncollectable. How much Bad Debt Expense should XYZ report in its Q4 income statement? (just enter numbers--no symbols like $ or ,)

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Question 101 pts

XYZ Co. has the following data related to an item of inventory:

Beg. Inventory, Jan. 1 200 units @ $4.20

Purchase, Jan. 7 400 units @ $4.40

Purchase, Mar. 16 300 units @ $4.50

End. Inventory, Mar. 31 100 units

The value assigned to ending inventory under the FIFO cost flow assumption is

$420

$430

$440

$450

None of the above

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Question 111 pts

In March 2015, XYZ Corp. purchased an item of inventory for $30. By June, that item could be purchased for $26 and re-sold for $31. XYZ’s normal profit for the item is $4. At what amount should XYZ report the item in its June 30 balance sheet? XYZ uses the LIFO inventory cost flow assumption. (omit , and $ in the answer)

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Question 121 pts

XYZ Company has been using the LIFO method of inventory valuation since it began operations in 2005. Its 2015 ending inventory was $50,000, but it would have been $100,000 if FIFO had been used. Thus, if FIFO had been used, XYZ's income before income taxes would have been

$50,000 greater over the 10-year life of the company

$50,000 less over the 10-year life of the company

$50,000 greater in 2015

$50,000 less in 2015

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Question 131 pts

XYZ Enterprises purchased equipment for $140,000 on July 1, 2013. The equipment is expected to have a four-year life and a residual value of $20,000. Using the sum-of-years'-digits method, the net book value of XYZ’s equipment on December 31, 2014, would be (omit $ and , in the answer):

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Question 141 pts

During 2015, XYZ Enterprises sold a piece of machinery, which originally cost $40,000, for $12,000. This sale resulted in a gain of $2,000. Also during 2015, XYZ’s Accumulated Depreciation account (for all fixed assets) increased from $200,000 to $210,000. How much did XYZ report as Depreciation Expense for 2015 (for all fixed assets)? There were no fixed asset impairments during 2015.

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Question 151 pts

At the end of its 2015 fiscal year, a triggering event caused XYZ Enterprises to perform an impairment test for one of its indefinite-lived intangible assets. The following information is available for the asset as of Dec. 31, 2015:

Original cost $56 million

Estimated undiscounted future cash flows $60 million

Fair value (discounted future cash flows) $50 million

Based on this information, XYZ should record:

no impairment

an impairment of $4 million

an impairment of $6 million

an impairment of $10 million

the correct answer cannot be determined

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer 1 750 in unearned revenue Since the customer paid in cash in 2015 but the dishwasher will be delivered in 2016 XYZ should record the ... View the full answer