Reference no: EM131794555
Exercise
Cheyenne Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below.
Cost |
Net Realizable Value
|
12/31/17 |
$356,450 |
$331,660 |
12/31/18 |
443,620 |
422,750 |
(a) Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
(b) Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at cost and a perpetual system using the loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
(c) Which of the two methods above provides the higher net income in each year?
Find cost of goods sold which directly affects your profits
: Do you want to increase or decrease your cost of goods sold which directly affects your profits? Do you want to increase or decrease your income tax liability
|
How would you reply to the president
: Smaller Corporation has been in operation for several years. From financial reporting and ethical perspectives, how would you reply to the president?
|
Calculate the cost per equivalent unit for transferred-in
: Journalize all events depicted as of May 15th - Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs
|
What are the primary differences in reporting benefits
: What are the primary differences in reporting benefits associated with a pension plan and those associated with post retirement health benefits
|
Discuss the two methods above provides the higher net income
: Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at LCNRV and a perpetual inventory system
|
Identify the consequences of the decision and its effect
: Identify the consequences of the decision and its effect on others? Make a decision that is ethical and fair to those affected by it?
|
Prepare the paid-in capital section of stockholders
: Journalize the transactions - Prepare the paid-in capital section of stockholders' equity at December 31, 2015 - Prepare a stockholders' equity section
|
What are the steps for developing ethical corporate culture
: What are the steps for developing and maintaining ethical corporate culture? Which step is the most important, in your opinion?
|
Discuss calculation of return on shareholders investments
: Which of the following is an advantage of standard costing, the calculation of return on shareholders investments
|