Part 1.jpeg o Search O Q @ @ IMG_9951.jpeg A Z Q Search PARTII PARTI In this project, you will determine how KLR Company will present information to us given the following information at the end of the year for each account. Consider the following information. Determine the amount that would be reported to us and calculate total current assets and long-term assets. That is, how would the company report each item to us? 1. Your new companys considering whether to report inventory under FIFO, LIFO or Average Cost and the accounting department has brought you the following three alternatives. Assuming prices were increasing when the inventory was purchased, which alternative uses FIFO? (Circle your answer) 1) Cash On December 31st, 2019, the company holds $188,000 in U.S. dollars and 60,000 Yen that are worth $ 68,000 in U.S. dollars. 2) Accounts Receivable. For the year 2019, the company has an ending accounts receivable balance of $ 35,000 . That amount does not include the company's estimate of bad debt expense of $2,800 that the company still needs to record. (Hint: Show your answer on the balance sheet as Net Accounts Receivable.) Account Cash Accounts Receivable Marketable Securities Inventory Other Current Assets Total Current Assets Alternative A 200,000 375,000 75,000 368,000 175,000 1.193.000 1,193,000 Alternative B 200,000 375,000 75,000 400,000 175,000 1,225,000 1.225,000 Alternative 200,000 375,000 75,000 421,000 175,000 1,246,000 3) Note Receivable. The company has an ending long-term notes receivable balance of $ 26,000 for 2019. The company accrued $3,000 of interest on the notes receivable during 2019. The interest will be collected in February of 2020. Alternative A Alternative B Alternative C 2. Consider the long-term assets section of the following 3 companies: 4) Inventory. The company's 2019 preliminary ending inventory is listed at $90,000 Due to a year. end adjustment, Cost of Goods Sold was decreased by $ 20,000 .Report the effect of this adjustment on the ending inventory balance. Account Notes Receivable PP&E Accumulated Depreciation Accumulated Amortization Accumulated Depletion Other Total Long-Term Assets Company A 550,000 1,300,000 (300,000) (175,000) Company B 550,000 1,300,000 (100,000) Company C 550,000 1,300,000 5) Marketable Securities. The company holds short-term securities that are classified as follows: Classification Original Cost FMV at Year End Held to Maturity $ 34,000 $ 32,000 Available for Sale $ 34,000 $ 36,000 Trading $ 34,000 $ 31,000 Totals $ 102,000 $ 99,000 400,000 1,775,000 (125,000) 400,000 2,025,000 (150,000) 400,000 2,100,000 Report the sum of these securities as a single line item on the balance sheet. 6) Insurance. On December 31st, 2019, the company paid $1,500 for liability insurance coverage for the year 2020. Which company or companies own intangible assets? (Hint: There may be more than one correct answer. Circle all that apply.) $300,000 for land 15 years ago that currently has a fair market value of Company A Company B 7. Land. The company paid $350,000 Company C Which company or companies own natural resources? (Hint: There may be more than one correct answer. Circle all that apply.) 8) Building. The building was purchased for $ 420,000 on March 1st of the current year and is being depreciated straight-line for 30 years. The salvage value is $ 24,000 . (Hint: State the related depreciation as a separate account. Depreciation starts when the asset is placed into service.) Company A Company B Company C 9) Goodwill. KLR Company purchased Atlantic Inc. for $ 700,000. The fair value of Atlantic's assets at the time of the purchase was $550,000 Liabilities at the time of the purchase were $ 250,000 10) Rent. On June 1st, the company paid in full 12 months of rent for $ 72,000 June 1st, 2019 and end May 31st, 2020. The lease begins on Group #