Question: Question 3: ( B1, C2, D3) (10 Points) The following items were taken from the records ofDELTA Company at the end of 2018. Bonds payable
Question 3: ( B1, C2, D3) (10 Points)
The following items were taken from the records ofDELTA Company at the end of 2018.
Bonds payable
$10,000
Accumulated Depreciation(land)
4,000
Prepaid Expense
1,000
Accounts Payable
3,000
Land
20,000
Long term Notes payable
1,000
Additional Paid in Capital
3,000
Long term investment
6,000
Short term investment
5,000
Common Stock
20,000
Accrual expense
2,000
Accounts Receivable
8,000
Cash
2,000
Retained Earnings
10,000
Patents
6,000
Inventories
5,000
Instructions: Prepare a classified balance sheet in good form as of December 31, 2018.
Question 4: ( B1, C1, D3) (10 Points)
Karim Company was formed on December 1, 2016. The following information is available from Karim's inventory record for Product X.
UnitsUnit Cost
January 1, 2017 (beginning inventory) 1,600$18.00
Purchases:
January 5, 20172,600$20.00
January 25, 20172,400$21.00
February 16, 20171,000$22.00
March 15, 20171,800$23.00
The total sales at 30 of March, 2017, shows 6900 units.
Instructions
Prepare schedules to compute the Cost of ending inventory and the Cost of goods sold at March 31, 2017, under each of the following inventory methods:
(a)FIFO.
(b)LIFO.
Answer of Question 4:
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