The following are the inventories for the years 2019, 2020, and 2021 for Parry Company:. Required: 1.
Question:
The following are the inventories for the years 2019, 2020, and 2021 for Parry Company:.
Required:
1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or net realizable value for each of the following alternatives:
a. Allowance method, perpetual inventory system
b. Direct method, perpetual inventory system
2. Next Level Explain any differences in inventory valuation and income between the two methods.
Cost NRV January 1, 2019 December 31, 2019 December 31, 2020 December 31, 2021 $50,000 64,000 71,000 75,000 $50,000 60,000 70,000 78,000
Step by Step Answer:
1 2 The two methods produce the same net inventory valuation and have the same effect on net income ...View the full answer
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
The following are the inventories for the years 2013, 2014, and 2015 for Parry Company: Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare...
-
The following are the inventories for the years 2013, 2014, and 2015 for Parry Company: Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare...
-
The following are the inventories for the years 2007, 2008, and 2009 for the Parry Company: Required Prepare journal entries to record the lower of cost or market for each of the following...
-
Let y be a variable that takes 0 or 1 value. Write an inequality to describe if y = 0, then x can take value from 0 to 5 and if y = 1, then x can take value 0. We are given 3 options. We are allowed...
-
Find the rms speed in air at 0.0 C and 1.00 atm of (a) The N2 molecules, (b) The O2 molecules, and (c) The CO2 molecules.
-
One-half of the adjustment is given below. Indicate the account title for the other half of the adjustment. a. Salaries and Wages Expense is increased. b. Depreciation Expense is increased. c....
-
In the California Daily 4 lottery, four digits between 0 and 9 inclusive are randomly selected each day. We normally expect that each of the ten different digits will occur about 1/10 of the time,...
-
Bond Price Movements Bond X is a premium bond making annual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making annual...
-
Consider the following data. ti 1.0 1.5 2.0 2.5 3.0 Yi 1.1 1.2 1.3 1.3 1.4 (a) Set up an overdetermined system of the form (3.1.3) for a straight line passing through the data points. Use the...
-
On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $600,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for...
-
On January 1, 2019, Seaver Company sold land with a book value of $23,000 to Bench Company. Bench paid $15,000 down and signed a $15,000 non-interest-bearing note, payable in two $7,500 annual...
-
The inventory records of Frost Company for the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be $125,000. On December 31, 2019, the cost of inventory was...
-
Refer to the information in the previous exercise for Seuss Company. Based on the information for Seuss Company, write a short report explaining the cause of the variances that you computed.
-
Each of the following is true about Walmart except that ______. a) it is the largest employer in the United States b) it is the largest company in the world c) it pays its employees, on average,...
-
If quantity supplied were greater than quantity demanded, market price would ________.
-
Which of the following is a natural monopoly? a) the National Football League b) a local phone company c) DeBeers Diamond Company d) IBM
-
An increase in the wage rate paid to construction workers will tend to _________. a) decrease the demand for homes b) cause a movement along the supply curve for new homes c) decrease the supply of...
-
Which statement is true? a) It is impossible for monopolies to exist in the United States. b) Once a monopoly is set up, it is impossible to dislodge it. c) Monopolies can be overcome only by market...
-
Dirkson Corporation has 20,500 shares outstanding of $12 par value, 7% preferred stock, and 41,000 shares outstanding of $12 par-value common stock. In its first 5 years of operation, the company...
-
Describe a job you have had in the past or a job you are very familiar with. Indicate the negative aspects of the job and how it could be improved with current human resource management techniques.
-
On January 1, 2013, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of...
-
On January 1, 2013, Tabor Company sold land with a book value of $50,000 to Wilson Company, accepting a $60,000 note, payable in three $20,000 annual installments beginning December 31, 2013. The...
-
On January 1, 2013, Pitt Company sold a patent to Chatham Inc. which had a carrying value on Pitt's books of $10,000. Chatham gave Pitt a $60,000 non-interest-bearing note payable in 5 equal annual...
-
Suppose a developing country currently has a GDP per capita of $1,300 and has a goal of doubling its average standard of living in 8 years. What will be the approximate annual economic growth rate...
-
In Python Compute a root of the function f(x) = x-2 using the secant method with initial guess x = 1.5 and x = 1. Choose a different initial guess and compute another root of the function f(x).
-
Given that A F = c(t)-dt+2m(t)-di where A = 5, T = /4, T = /2, In Python c(t) = cos(t) sin(t) and m(t)=sin(t) = cos(t). Use Trapezoid Method to compute the denominator of the above formula and then...
Study smarter with the SolutionInn App