The balance sheet value of a firm's inventory is $65,000. Suppose that the firm purchases supplies...
The balance sheet value of a firm's inventory is $65,000. Suppose that the firm purchases supplies at a cost of $3,500 and adds them to inventory. A day later, the market value of the recently purchased supplies changes to $5,000.
Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory?
Note: Students with prior accounting experience should not apply the monthly "lower of cost or market" adjustment. This is a day-to-day fluctuation.
Homework Answers
ANSWER:
Final balance sheet value of inventory using the historical cost method:
= $65000+$3500= $68500
Add Answer to:
The balance sheet value of a firm's inventory is $65,000.
Suppose that the firm purchases supplies...
The balance sheet value of a firm's inventory is $65,000. Suppose that the firm purchases supplies...
The balance sheet value of a firm's inventory is $65,000. Suppose that the firm purchases supplies at a cost of $1,000 and adds them to inventory. A day later, the market value of the recently purchased supplies changes to $3,500. Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory? Note: Students with prior accounting experience should not apply the monthly "lower of cost or market" adjustment. This is...
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Also prepare a balance sheet for them as of September 1, 2020
assuming the following information that Mary has gleaned from bank
and investment account statements, life insurance contracts, a
household inventory, and real estate documents. The biggest asset
they own is their home. They purchased the home a few years ago for
$225,000. The tax assessed value (used to calculate their property
taxes is $250,000. A very recent appraisal was done on the property
by an...
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