Reference no: EM133135973
Questions -
Q1. On September 1, Y5, Aylmer Inc signs a purchase commitment to purchase inventory items for $900,000. Aylmer will take delivery of those items in Y6. Aylmer has a December 31 fiscal year and on December 31, Y5, the fair value of the inventory items declined to $432,800. The fair value remained at this low amount until Aylmer took delivery.
What amount should be recorded as Accounts Payable when Aylmer takes delivery of the inventory items?
Q2. Aylmer Inc offers credit terms of 2/10, n/60. Aylmer makes a sale of $10,000 and uses the NET METHOD to record sales. Aylmer expects the discount will be taken by the purchaser. What amount should Aylmer record at the time of the sale (what amount should sales be credited)?
Q3. On September 1, Y5, Aylmer Inc signs a purchase commitment to purchase inventory items for $900,000. Aylmer will take delivery of those items in Y6. Aylmer has a December 31 fiscal year and on December 31, Y5, the fair value of the inventory items declined to $432,800. The fair value remained at this low amount until Aylmer took delivery.
What amount should be recorded as a Liability for Onerous Contracts?
Q4. The inventory of Aylmer Inc on December 31, Y8 consists of the following items:
|
Part No
|
Quantity
|
Cost per Unit
|
NRV
|
|
51
|
100
|
$5.00
|
$4.50
|
|
52
|
200
|
$6.00
|
$6.90
|
|
53
|
300
|
$8.00
|
$7.20
|
Determine the inventory as at December 31, Y8, by the lower of cost and net realizable value method, applying this method to the total of the inventory
Q5. Aylmer Inc uses the cost model to record its investment in shares. On July 1, Y3 the company purchased 1,000 shares of Belmont Inc for $3.50 per share. On March 1, Y4, the company sold all the shares for $4.20 per share. How much is the gain on the disposal of investments?