Prepare the journal entry required to establish

Assignment Help Accounting Basics
Reference no: EM131117387

Lower-of-Cost-or-Market-Valuation Account Presented below is information related to Knight Enterprises.

(a) From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost, the gain or loss due to market fluctuations is to be shown separately, and a valuation account is to be set up for the difference between cost and the lower-of cost-or-market.

(b) Prepare the journal entry required to establish the valuation account at January 31 and entries to adjust it monthly there after. 

643_11-B-A-V-I (116).PNG

Reference no: EM131117387

Questions Cloud

Considerations for researching legal and regulatory : As you continue to build your final facility, the legal team has provided you with considerations for researching legal and regulatory requirements that may affect the facility planning process.
Find the equations and transfer function for biquad circut : Find the equations and transfer function for the biquad circuit of Fig. 2.49 if Ra = R1, and Rb = Rc = ∞.
Premium delivery service : However, for each day that a supplier can reduce the average delivery time, the appliance manufacturer will shift 5% if its total purchases (or 150 cases) to the supplier offering the premium delivery service. A supplier earns a margin of 20% on e..
What is the total cost of leasing the truck today : What is the total cost of leasing the truck today? What are the annual cash flows if the truck is purchased with debt financing? What is the cost of purchasing the truck with debt financing today?
Prepare the journal entry required to establish : Prepare the journal entry required to establish the valuation account at January 31 and entries to adjust it monthly there after.
Opposing globalization of trade and investment : 1. How does the notion of sustainable business compare to Milton Friedman's assertion that the focus of business should be only on the bottom line? 2. Using examples, discuss and illustrate the arguments supporting and opposing globalization of tra..
Theoretical framework on youth unemployment : Complete a theoretical framework on youth unemployment in Trinidad and Tobago.
Explain how wal mart could use the international bond market : Explain how the Wal-Mart outlets in China would use the spot market in foreign exchange. Explain how Wal-Mart might utilize the international money markets when it is establishing other Wal-Mart stores in Asia. Explain how Wal-Mart could use the inte..
How your attitude about financial management has been affect : Explain how your attitude about financial management has been affected by the information you gained in this course. Explain the knowledge/insights you think will be most useful in developing your own financial style and why.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Character of foreaker gain

Foreaker LLC sold a piece of land that it uses in its business for $52,000. Foreaker bought the land two years ago for $42,500. What is the character of Foreaker's gain?

  After-tax profit of falcon company

Compute the after-tax profit of Falcon.Com separately for both the (1) FIFO and (2) LIFO methods of inventory valuation assuming the company has no expenses other than cost of goods sold and its income tax rate is 50%. Taxes are accrued currently ..

  Prepare a bond amortization schedule

Required: 1. Prepare a bond amortization schedule. 2. Give the journal entry to record the bond issue. 3. Give the journal entries to record the interest payments on December 31, 2015 and 2016. 4. Give the journal entry to record the interest and fac..

  Keller co manufactures a product with a unit variable cost

keller co. manufactures a product with a unit variable cost of 150 and a unit sales price of 264. fixed manufacturing

  For many years zapro company manufactured a single product

for many years zapro company manufactured a single product called a mono-relay. then three years ago the company

  Determine income on an accrual basis

a. Determine income on an accrual basis. b. Determine income on a cash basis.

  Prepare the journal entries that would be recorded

An assumed interest of 8% is implicit in the purchase price.Prepare the journal entries that would be recorded for the purchase and for the payments and interest on the following dates.

  At a recent meeting one of your coworkers stated that using

at a recent meeting one of your coworkers stated that using the right analysis tool will compensate for inexperienced

  Gain or loss on the called bonds

Straight-line amortization is used for discounts and premiums. On September 1, 2012, $3,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2012?

  Browse the internet to acquire a copy of the most recent

browse the internet to acquire a copy of the most recent annual report for publicly traded company.examine the

  Kevin winthrop is saving for an australian vacation in

kevin winthrop is saving for an australian vacation in three years. he estimates that he will need 4352 to cover his

  Difference between the real wage and the money wage rate

Describe a business cycle. Mention all the phases of a business cycle and tell the order where they occur - what is the difference between the real wage and the money wage rate and define the natural rate of unemployment

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