y Home X CengageNOWv2 X Ebooks-Cengag X My Home gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true X Ebooks - Cenga X M Your question wa X a. On the year-end balance sheet, Playground Equipment Corporation reported its inventory at market value, which was greater than cost. As a result of this procedure, a gain was recognized on the company's income statement. b. Mrs. Devlin, the president of the company, purchased an automobile for her son using the company's money. The company's accountant recorded the expenditure as salaries expense. Check My Work 1 more Check My Work uses remaining. Presented below are five inappropriate accounting procedures that are being used by the Playground Equipment Corporation. For each of the items below, select an accounting assumption or principle that is being violated. How much will y c. Playground Equipment Corporation reported income from operations of $5,000,000 for the current year. During the year, Devlin settled and paid a $5,000,000 class action lawsuit against the company resulting from damages incurred from the sale of defective products. The settlement was reported as a miscellaneous expense with no footnotes provided. All work saved. d. Playground Equipment is going to issue additional common stock next year. In order to improve its income, the company switched from the LIFO inventory cost flow method to FIFO. The company did not disclose the accounting change. Comparative financial statements were prepared. e. The company made $3,000,000 of expenditures to expand a building that originally cost $5,000,000. The expenditures are expected to benefit operations over the building's remaining useful life of ten years. The expenditures were expensed as maintenance. 5 X Previous + 111 Next > Submit Test for Grading G

Presented beiow are fwe inapproprate accounting procodures that are being usod by the Playground Equipment corporation, For each of the items below, select an accounting ausumption er princiole that is being violuted. a. On the vear-end bulance sheet, Playground Equipment Corporation reported its inventory ac market value, which was greater than cont. As a rewult of this procedore, a gah was recogncred en the company's income satement. b. Nos. Deylin, the president of the company, purchased an automobile for her son using the company's money. The company's accountant recorted the expencicure as salaries expense. C. Moyground toulpment Corporation reported income from operatians of $5,000,000 for the current year. During the year, Devin settied and pald a $5,000,000 class action lowsult against the company resulting from damages incurred from the sale of defective products. The tettiement was reported as a misceltaneous expense with no foothotes provided. d. Playground Equipment is going to issue additiond common stock next year. In erder to improve its income, the company switched from the LFO inventory cost fow method to nifo. The company did not disclose the occounting change. Comparative financiat sta:ements were prepared: e. The compary mode $3,000,000 of expenditures to expand a building that eriginally cont $5,000,000. The expenditures are expected to benefit operations over the building's remaining useful life of ten vears. The expendtures were expensed as maintenance