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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at
market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the
amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit

Transcribed Image Text:Wildhorse Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at
December 31, 2024, and December 31, 2025. This information is presented below.
Cost
12/31/24 $380,130
12/31/25
375,650
Lower-of-Cost-or-Market
$359,390
358,630
(a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at
market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles
and enter o for the amounts. Record journal entries in the order presented in the problem.)
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- A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $165,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Ending Inventory at Year-End Costs Cost Index (Relative to Base Year) 2024 $ 243,800 1.06 2025 324,500 1.18 2026 304,750 1.15 2027 299,700 1.11 Required: Calculate inventory amounts at the end of each year. (nearest whole dollars)arrow_forwardHelparrow_forwardDONT GIVE ANSWER IN IMAGE FORMATarrow_forward
- answer in text form please (without image), Note: .Every entry should have narration pleasearrow_forwardCoronado uses LIFO inventory costing. At January 1, 2020, inventory was $427,200 at both cost and market value. At December 31, 2020, the inventory was $543,600 at cost and $511,200 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)arrow_forwardYou have the following information for Bramble Inc. for the month ended June 30, 2022. Bramble uses a periodic inventory system. Date Description Quantity Unit Cost orSelling Price June 1 Beginning inventory 40 $31 June 4 Purchase 135 34 June 10 Sale 110 61 June 11 Sale return 15 61 June 18 Purchase 55 37 June 18 Purchase return 10 37 June 25 Sale 65 67 June 28 Purchase 35 41arrow_forward
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