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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Transactions
1. Purchased inventory on account.
2. A larger physical volume of goods was sold
at smaller unit prices.
3. Corporation declared a cash dividend.
4. A bad account was written off against
the allowance account.
5. Issued additional shares of common stock
and issued proceeds to retire long-
term debt.
6. Paid stock dividends on common stock
in common stock.
7. Conversion of bonds payable into
common stock (ignore income taxes)
8. Created an appropriation of
retained earnings
9. During period of rising prices, company
changed from FIFO to LIFO method of
inventory pricing
10.Paid previously declared cash dividend.
for all costs.
Ratio
1. Quick ratio
2. Gross profit
percentage
3. Current ratio
4. Current ratio
5. Debt ratio
6. Earnings per
share
7. Interest coverage
ratio
8. ROR on stockhold-
er's equity
9. Inventory turnover
10. Debt ratio
REQUIRED:
1. What effect would each transaction or event have on the ratio at the right
(increase, decrease, remain unchanged)?
Expert Solution
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- 3. What is the NAV?arrow_forwardneed help with question 6arrow_forwardZina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800arrow_forward
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