Prepare the journal entries required

Assignment Help Accounting Basics
Reference no: EM132070327

Question - Monster Company began operations in 2013 and, as presented below, determined its ending inventory at cost and at NRV as of December 31, 2013, December 31, 2014, December 31, 2015.

Date

Cost

Net Realizable Value

12/31/13

$356,000

$349,000

12/31/14

336,000

325,000

12/31/15

316,000

350,000

a. Prepare the journal entries required at 12/31/2013, 12/31/2014, and 12/31/2015 using a contra-asset account, assuming that the inventory is recorded at LCNRV, under a perpetual inventory system using the cost-of -goods -sold method.

b. Prepare the journal entries required at 12/31/2013, 12/31/2014, and 12/31/2015 using a contra-asset account, assuming that the inventory is recorded at LCNRV, under a perpetual inventory system using the loss method.

c. In each year, which of the two methods above provides the higher net income?

Reference no: EM132070327

Questions Cloud

Why integrated technology has improved the ability : Technology has changed the way we conduct business on a daily basis. A number of organizations have opted for integrating systems and sharing information.
Identify the related needs based on the identified problems : Explain how you would work with the client to identify and prioritize problems. Identify the related needs based on the identified problems.
What is the current market value of the firm debt : They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm debt?
What is restricted stock and who owns the stock : What is restricted stock? Who owns the stock? Describe how compensation expense is determined and recorded for a restricted stock plan
Prepare the journal entries required : Prepare the journal entries required at 12/31/2013, 12/31/2014, and 12/31/2015 using a contra-asset account
Demonstrate thoughtful consideration of the ideas : You should locate five peer reviewed qualitative studies. Summarize the topic, problem, purpose, design, and findings of each.
Explain the importance of the topic and research question : Psychosis is a mental state in which individuals experience a loss of touch with reality(Boychuk, Lysaght, & Stuart, 2018).
Weber developed the principles of bureaucracy to build : Weber developed the Principles of Bureaucracy to build organizations that would make the best possible decisions for a business.
Joint commission to provide policy : What is the need for the Joint Commission to provide policy.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd