Reference no: EM132383726

Assignment Task - Study the The dumpling shop serial case and then prepare a report to answer the questions.

Required:

(1) Prepare the simplified T-account map for each week. You should use First-in-first-out (FIFO) method to calculate the value of inventory.

(2) Prepare the balance sheet for each week.

(3) Prepare the Profit-loss statement (income statement) for the three weeks as a whole.

(4) If you use Last-in-first-out (LIFO) method, what is the book value of inventory each week and the profit at the end of Week 3.

(5) Which events relate to accrual accounting? Why account receivables correspond to revenue? Why account payables correspond to expense?

(6) Is the expenditure of $400 on establishing the stall an expense? Why?

(7) Is the depreciation of the stall considered as expense? Why?

(8) Which events relate to prepaid expenses? Are prepaid expenses really expenses?

Why? In what situation can prepaid expenses be transferred to expenses?

(9) Which event relates to unearned revenues? Are unearned revenues really revenues? Why? In what situation can the unearned revenue be transferred to revenue?

(10) Which events relate to Cost of Goods Sold? Why Cost of Goods Sold is an expense?

(11) Compare between Cost of Goods Sold, depreciation, rent, and the assistant's salary.

Note - It's a practical question, no word limit if you give the correct answer.

Attachment:- Dumpling Shop Serial Case.rar