Questions from Financial Reporting

Q: The following information relates to Zulu Company’s accounts receivable for 2017:

The following information relates to Zulu Company’s accounts receivable for 2017: Accounts receivable, 1/1/2017 ………………….………………….…………………. $ 750,000 Credit sales for 2017 ………………….………………….………………….………………...

Q: On January 1, 2017, Manuel Company’s merchandise inventory was $

On January 1, 2017, Manuel Company’s merchandise inventory was $300,000. During 2017, Manuel purchased $1,900,000 of merchandise and recorded sales of $2,000,000. The gross profit margin on these sale...

Q: Selected information concerning the operation of Kern Company for the year ended

Selected information concerning the operation of Kern Company for the year ended December 31, 2017, is available as follows: Units produced …………………………………………………………………10,000 Units sold ……………………………………………...

Q: Blago Wholesale Company began operations on January 1, 2017, and

Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 2018 and is intereste...

Q: KW Steel Corp. uses the LIFO method of inventory valuation.

KW Steel Corp. uses the LIFO method of inventory valuation. Waretown Steel, KW’s major competitor, instead uses the FIFO method. The following are excerpts from each companyâ&#...

Q: Nathan’s Grills, Inc., imports and sells premium-quality gas

Nathan’s Grills, Inc., imports and sells premium-quality gas grills. The company had the following layers in its LIFO inventory at January 1, 2017, at which time the replacement cost...

Q: The following inventory valuation errors have been discovered for Knox Corporation:

The following inventory valuation errors have been discovered for Knox Corporation: The 2015 year-end inventory was overstated by $23,000. The 2016 year-end inventory was understated by $61,000. Th...

Q: / The following additional information is provided:

The following additional information is provided: a. The company paid a salary advance of $5,000 to one of its employees, a total that was debited to the Salaries expense account. This was an advance...

Q: The following events and transactions related to David Company occurred after the

The following events and transactions related to David Company occurred after the balance sheet date of December 31, 2017, and before the financial statements were issued in 2018. None of the items is...

Q: Moore Corporation uses the FIFO cost flow method and has numerous units

Moore Corporation uses the FIFO cost flow method and has numerous units of two products in its ending inventory. Each is accounted for at the lower of cost or net realizable value under Accounting Sta...