Blossom Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes....
Blossom Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,387,700. At December 31, 2020, Blossom’s internal reports indicated that the FIFO inventory balance was $2,875,500 and for external reporting purposes the LIFO inventory balance was $1,390,400.
What is the amount of the LIFO reserve and the LIFO effect related to 2020?
|
LIFO reserve at December 31, 2020 |
$enter a dollar amount |
|
|---|---|---|
|
LIFO effect for 2020 |
$enter a dollar amount |
eTextbook and Media
List of Accounts
What is the journal entry needed to record the LIFO effect at December 31, 2020? (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
Dec. 31, 2020 |
enter an account title for the journal entry on December 31, 2017 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on December 31, 2017 |
enter a debit amount |
enter a credit amount |
Homework Answers
LIFO reserve on January 1, 2020 = $1,387,700
FIFO inventory balance on Dec. 31, 2020 = $2,875,500
LIFO inventory balance on Dec. 31, 2020 = $1,390,400
LIFO effect for 2020 = LIFO reserve on December 31, 2020 - LIFO reserve Jan 1, 2020
= 1,485,100 - 1,387,700
= $97,400
LIFO reserve at Dec. 31, 2020 = FIFO inventory balance on Dec. 31, 2020 - LIFO inventory balance on Dec. 31, 2020
= 2,875,500 - 1,390,400
= $1,485,100
| LIFO reserve at Dec. 31, 2020 | $1,485,100 |
| LIFO effect for 2020 | $97,400 |
Journal
|
Date |
Account Title and Explanation |
Debit |
Credit |
| Dec. 31, 2020 | Cost of goods sold | 97,400 | |
| LIFO reserve | 97,400 |
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Add Answer to:
Blossom Company uses the LIFO method for financial reporting
purposes but FIFO for internal reporting purposes....
Blossom Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes....
Blossom Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,387,700. At December 31, 2020, Blossom's internal reports indicated that the FIFO inventory balance was $2,875,500 and for external reporting purposes the LIFO inventory balance was $1,390,400. (a) Your answer is correct. What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31,...
Sarasota Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes....
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purposes but FIFO for internal reporting purposes. At January 1,
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FIFO inventory balance was $2,829,800 and for external reporting
purposes the LIFO inventory balance was $1,528,200.
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FIFO inventory balance was $2,829,800 and for external reporting
purposes the LIFO inventory balance was $1,528,200.
What is the amount of the LIFO reserve and the LIFO effect
related to 2017?
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$
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Blossom Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,387.700. At December 31, 2020, Blossom's internal reports indicated that the FIFO inventory balance was $2.875,500 and for external reporting purposes the LIFO inventory balance was $1,390,400. (a) What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31, 2020 $ LIFO effect...
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