Balance Sheet II Questions 5 and 6

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5

Anne m samba Sheet H5 (If January 5, 201? [munts il mtmncks] WWW WWW, _- _- _- mm Update the balance sheet above to reect the b'ansactions below, which occur on Januaryr E, 2012 1. Sell product for $35,000 with historical cost of $28,000 2. Sell product for $20,000 with historical cost of $16,000 3. Sell product for $40,000 with historical cost of $32,000 What is the nal amount in Retained Earnings? Please specify your answer in the same units as line balance sheet. The balanoe sheet value of a rm's inventory.r is $55,0dl}. Suppose that the rm purchases supplies at a cost of $4,510!) and adds them to inventorv. A day.r later, the market value of the recentlv purchased supplies changes to $3,5d0. Assuming no other changes to inventorv, and using the historical cost method, what is the nal balance sheet value of inventory? Note: Students with prior aocounting experienoe should not applyr the monthlv "lower of cost or market" adjustment. This is a davtodav uctuation