Eagle Resources, which uses the FIFO method, has the following account balances at May 31, 2012, prior

Question:

Eagle Resources, which uses the FIFO method, has the following account balances at

May 31, 2012, prior to releasing the financial statements for the year:


Cost of goods sold Sales revenue Inventory 12,500 Beg Bal End Bal 13,000 Bal 118,000 Bal 69,000


Eagle has determined that the replacement cost (current market value) of the May 31, 2012, ending inventory is $12,800.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Eagle report on the balance sheet at May 31, 2012, forinventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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