Weber Co. had three major business transactions during 2020. a. Reported at its fair value of $260,000
Question:
Weber Co. had three major business transactions during 2020.
a. Reported at its fair value of $260,000 merchandise inventory with a cost of $208,000.
b. The president of Weber Co., Austin Weber, purchased a truck for personal use and charged it to his
expense account.
c. Weber Co. wanted to make its 2020 income look better, so it added 2 more weeks to the year (a 54-
week year). Previous years were 52 weeks.
Instructions
In each situation, identify the assumption or principle that has been violated, if any, and discuss what the
company should have done.
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a This is a violation of the historical cost principle The inventory was writ...View the full answer
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Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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