Q: George Young Industries (GYI) acquired industrial robots at the beginning
George Young Industries (GYI) acquired industrial robots at the beginning of 2015 and added them to the company’s assembly process. During 2018, management became aware that the $1 million cost of the...
See AnswerQ: Shown below in T-account format are the changes affecting the
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2018. At January 1, 2018, the corporation had outstanding 105 million common shares,...
See AnswerQ: The Cecil-Booker Vending Company changed its method of valuing inventory
The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2018. At December 31, 2017, inventories were $120,000...
See AnswerQ: Sheen Awnings reported net income of $90 million. Included in
Sheen Awnings reported net income of $90 million. Included in that number were depreciation expense of $3 million and a loss on the sale of equipment of $2 million. Records reveal increases in account...
See AnswerQ: On January 1, 2018, VKI Corporation awarded restricted stock units
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within...
See AnswerQ: The Pyramid Company has used the LIFO method of accounting for inventory
The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2016 and 2017. At the beginning of 2018, Pyramid decided to change to the average cost...
See AnswerQ: In 2017, Quapau Products introduced a new line of hot water
In 2017, Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approxi...
See AnswerQ: Shown below are net income amounts as they would be determined by
Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods ($ in thousands). Required: 1. Assume that Weihrich used...
See AnswerQ: In keeping with a modernization of corporate statutes in its home state
In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased...
See AnswerQ: The Rockwell Corporation uses a periodic inventory system and has used the
The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to change to the average cost method. D...
See Answer
