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 a day-to-day fluctuation.
Homework Answers
Value of inventory = inventory + supplies
= $65000 + 10000
= $66000
Explanation: Under historical cost method, inventory is valued at its original price.
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 $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 firm carries a commodity inventory at a cost of $750,000 and plans to sell it...
A firm carries a commodity inventory at a cost of $750,000 and plans to sell it in 60 days. Its market value is currently $800,000. To hedge against a decline in value of the commodity, the company sells commodity futures for delivery in 60 days at a price of $800,000. There is no margin deposit. At the company's 2020 year-end, 30 days later, the 30-day futures price is $780,000 and the inventory value declined to $779,000. Income effects of the...
Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of...
Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.05%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds (book value / 1,000) to...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.25%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds (book...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.05% , so the bonds now selll below par. VWhat is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds...
Question 17 Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at...
Question 17 Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.95%, so the bonds now sell below par. What is the current market value of the firm's debt? 5 pts Hint: Calculate the price of the bonds, and multiply by number of bonds (book...
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from...
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. YRKF Corporation's balance sheet (book values) as of today is as follows: Long-term debt (bonds, at par) $60,000,000 Preferred stock 3,000,000 Common stock ($10 par) 10,000,000 Retained earnings 5,000,000 Total debt and equity $78,000,000 The bonds have a 7.3% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 20...
Cash Accounts Receivable Inventory Property Plant & Equipment Other Assets Dansko Integrated Balance Sheet As of...
Cash Accounts Receivable Inventory Property Plant & Equipment Other Assets Dansko Integrated Balance Sheet As of March 11, 2020 (amounts in thousands) 9,900 Accounts Payable 4,500 Debt 3,800 Other Liabilities 16,800 Total Liabilities 1,600 Paid-In Capital Retained Earnings Total Equity 36,600 Total Liabilities & Equity 2,700 3,500 1,000 7,200 8,000 21,400 29,400 36,600 Total Assets Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question....
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6,4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.05%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds book...
1) On a merchandising balance sheet, merchandise inventory is listed as a(n) A) current liability. B)...
1) On a merchandising balance sheet, merchandise inventory is listed as a(n) A) current liability. B) expense. C) revenue. D) current asset. 2) A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with terms of 2/1o, n/30. Which of the following is the journal entry to record the payment made within 1 A) a debit to Accounts Payable for $63,700, a debit to Merchandise Inventory for $1,300 and a credit to Cash fors65,000 B) a...
Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.05%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds (book value / 1,000) to...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.25%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds (book...
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.05% , so the bonds now selll below par. VWhat is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds...
Question 17 Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.95%, so the bonds now sell below par. What is the current market value of the firm's debt? 5 pts Hint: Calculate the price of the bonds, and multiply by number of bonds (book...
Cash Accounts Receivable Inventory Property Plant & Equipment Other Assets Dansko Integrated Balance Sheet As of March 11, 2020 (amounts in thousands) 9,900 Accounts Payable 4,500 Debt 3,800 Other Liabilities 16,800 Total Liabilities 1,600 Paid-In Capital Retained Earnings Total Equity 36,600 Total Liabilities & Equity 2,700 3,500 1,000 7,200 8,000 21,400 29,400 36,600 Total Assets Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question....
Question 17 5 pts Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 6,4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 9.05%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, and multiply by number of bonds book...
1) On a merchandising balance sheet, merchandise inventory is listed as a(n) A) current liability. B) expense. C) revenue. D) current asset. 2) A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with terms of 2/1o, n/30. Which of the following is the journal entry to record the payment made within 1 A) a debit to Accounts Payable for $63,700, a debit to Merchandise Inventory for $1,300 and a credit to Cash fors65,000 B) a...
Most questions answered within 3 hours.
-
A sample of C3H8 has 1.60×1024 H atoms.
How many carbon atoms does the sample contain?...
asked 3 minutes ago -
Discuss the sales orders process module(s) in the Enterprise
Resource Planning system. How does it contribute...
asked 6 minutes ago -
The position in an object as a function of time is given as ?
(?) =...
asked 6 minutes ago -
Design a class for python named PersonData with the following
member variables:
lastName
firstName
address
city...
asked 20 minutes ago -
How does use of the risk/need/responsivity model impact
effective rehabilitation services?
asked 24 minutes ago -
Your rich uncle has just given you a high school graduation
present of $900,000. The present,...
asked 26 minutes ago -
1=Write a program in C to get 16-bit data from Port-D and send
it to ports...
asked 25 minutes ago -
Calculate Ecell for the following reaction and conditions: 0.50
M Br2 (aq), 0.10 M Pb+2 (aq),...
asked 46 minutes ago -
There can be more than one correct answer.
Hypophysiotropic hormones:
A. released by the hypothalamus
B....
asked 51 minutes ago -
Scott Ruskin is the CEO of Decatur Materials. The company has
been struggling for the last...
asked 49 minutes ago -
If you were conducting a study involving twins regarding
genetics and/or upbringing, which would you use?...
asked 1 hour ago -
Part 1- Inventory: You own a toy company and
you are producing wooden rocking horses. Assume...
asked 1 hour ago