Kafir Company started business at the beginning of year 1. The company applies the lower-of-cost-or-market (LCM) rule
Question:
The market value number already includes consideration of the replacement cost, the ceiling, and the floor. Make the journal entry necessary to record the LCM adjustment at the end of year1.
Transcribed Image Text:
Cost Market Value Year I S1,500 $800
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
Loss on Wr...View the full answer
Answered By
Cristine kanyaa
I possess exceptional research and essay writing skills. I have successfully completed over 5000 projects and the responses are positively overwhelming . I have experience in handling Coursework, Session Long Papers, Manuscripts, Term papers, & Presentations among others. I have access to both physical and online library. this makes me a suitable candidate to tutor clients as I have adequate materials to carry out intensive research.
4.90+
1538+ Reviews
3254+ Question Solved
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Question Posted:
Students also viewed these Managerial Accounting questions
-
The company started business at the beginning of Year 1. The company applies the lower-of-cost-or-market (LCM) rule to its inventory as a whole. Inventory cost and market values as of the end of Year...
-
The company started business at the beginning of Year 1. Inventory purchases and sales during the first four years of the company's business are as follows: Compute the company's ending inventory as...
-
The company started business at the beginning of Year 1. Inventory purchases and sales during the first four years of the company's business are as follows: Compute the company's ending inventory as...
-
Picasso Co. issued 5,000 shares of its $1 par common stock, valued at $100,000, to acquire shares of Seurat Company in an all-stock transaction. Picasso paid the investment bankers $35,000 and will...
-
Garnett Printing Corp. uses a job-order cost system. The following data summarize the operations related to the first quarter's production: 1. Materials purchased on account were $192,000, and...
-
The angle at which any one of Robbins Industries metal shaving machine camshafts comes to rest after spinning has a uniform distribution defined by the density function a. Determine the probability...
-
Continuation of P10-35B: cash budgets (Learning Objective 3) Refer to P10-35B. Go Sports sales are 50% cash and 50% credit (use sales on the last two lines of P10-35B). Credit sales are collected in...
-
(Computation of Prior Service Cost Amortization, Pension Expense, Journal Entries, and Net Gain or Loss) Aykroyd Inc. has sponsored a noncontributory-defined benefit pension plan for its employees...
-
Section 14.3: Problem 8 Previous Problem Problem List Next Problem (1 point) Find all second-order partial derivatives. f(x, y) = 6 sin(4xy) f = Ox 2 a2 f = dy2 a f axdy a2 f = dydx f(x, y) = tan-1...
-
Angelo says, When Im trying to have a face-to-face conversation with someone, and that person repeatedly interrupts the conversation to answer their cell phone or exchange text messages, they are...
-
The following information pertains to the companys ending inventory : Apply lower-of-cost-or-market accounting to each inventory item individually. What total amount should be reported as inventory...
-
On August 17, the companys inventory was destroyed in a hurricane-related flood. For insurance purposes, the company must reliably estimate the amount of inventory on hand on August 17. The company...
-
Jerry Taschs will has the following provisions: $150,000 in cash goes to Thomas Thorne. All shares of Coca-Cola go to Cindy Phillips. Residence goes to Kevin Simmons. All other estate assets are...
-
For this assessment, you will be required to research the following questions to provide sufficient evidence of your knowledge for this unit. There are word limits to guide your responses, however,...
-
1. Discuss who socially responsible investors are and how they use (T-bills), mutual funds, and hedge funds to diversify their portfolios. 2. Analyze the results of the T-bills listed and the net...
-
Heurion worked on five jobs in July. Data are as follows: Job 741Job 742Job 743Job 744Job 745Balance, July 1$29,870$55,215$27,880$0$0Direct materials$25,500$39,800$14,450$13,600$8,420Direct labor...
-
How activity-based budget can improve the activity based performance? please Explain in very simple wordings. thanks
-
Why is Porter's five model in decision making is useful in management information systems?
-
The running time for videos submitted to YouTube in a given week is normally distributed with = 390 seconds and standard deviation = 148 seconds. a. If a single video is randomly selected, what is...
-
Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...
-
For each of the following ground-state atoms, predict the type of orbital (1s, 2p, 3d, 4f, etc.) from which an electron will be removed to form the + 1 ion: (a) Ge; (b) Mn; (c) Ba; (d) Au.
-
Bill Jones's parents insisted that Bill buy himself a new sport shirt. Bill's father gave specific instructions, saying the shirt must be in "good taste, that is, neither too wildly colored nor too...
-
A farmer must decide what combination of seed, water, fertilizer, and pest control will be most profitable for the coming year. The local agricultural college did a study of this farmer's situation...
-
Identify the alternatives, outcomes, criteria, and process for the selection of your college major? Did you make the best choice for you?
-
Joker & Wild LLC has just been sued by its audit client, Canasta, Incorporated, claiming the audit failed to be conducted in accordance with generally accepted auditing standards, lacked the...
-
Compute Quick Ratio: Requirements: From the balance sheet data, where: Quick Assets: $150,000 Current Liabilities: $60,000 Calculate the quick ratio. Express the quick ratio as a numerical value....
-
A company produced 30,000 units during the month. Total manufacturing costs, including direct materials, direct labor, and factory overhead, amounted to $600,000. If the ending inventory was valued...
Study smarter with the SolutionInn App