Two methodologies are discussed by the author regarding "Depreciation," The Constant Dollar Adjustment method and the Current...
Homework Answers
Constant Dollar Adjustment method in accounting is a method for restating financial statements for the effects of inflation. Doing so achieves greater comparability between the financial statements associated with different accounting periods.
The adjustment is usually made using the consumer price index ( CPI ). The adjustment does not require any changes to monetary items, such as cash and cash equivalents.
The adoption of Current Cost Adjustment method in accounting in place of Current Purchasing power of Replacement Cost Accounting Technique for price level changes.
The crux of the current cost technique is the preparation of financial statements (Balance Sheet and Profit and Loss Account) on the current values of individual items and not on the historical or original cost.
In my opinion, The Constant Dollar Adjustment method is most accurate from an accounting perspective, because it accounts for inflation, which is needed for true measure of asset and liabilities.
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Two methodologies are discussed by the author regarding
"Depreciation," The
Constant Dollar Adjustment method
and the
Current...
Problem IV: (4.5 pts) Woodberry Corp. uses the dollar-value LIFO (DVL) inventory costing method. It has...
Problem IV: (4.5 pts) Woodberry Corp. uses the dollar-value LIFO (DVL) inventory costing method. It has the following normal account balances at 12/31/20 before the year-end adjustment to convert the cost of its inventory to LIFO using the DVL method: Inventory (at FIFO costs) LIFO reserve S 200,000 dr 25,000 cr At the end of 2020, Woodberry computes the cost of its ending inventory using the DVL method to be $160,000 Required: In the journal below, prepare the year-end entry...
POWS WILL Instructions: Using the sum-of-the-years'-digit and double-declining balance depreciation methods, compute the depreciation expense for...
POWS WILL Instructions: Using the sum-of-the-years'-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables, Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1, 2018, at a cost...
Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018...
Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1. 2018, at a cost of $56,000....
1. Compare and contrast the direct write-off method and the allowance method for bad debts. At...
1. Compare and contrast the direct write-off method and the allowance method for bad debts. At a minimum, please consider the following in your answer: When is the expense for uncollected accounts receivable recognized under each method? Why is the direct write-off method not considered to follow generally accepted accounting. 2.Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased? Choose one of the following depreciation methods to discuss: straight line, units...
Country sporting goods started april with an inventory of 8 sets of gold clubs: Country Sporting...
Country sporting goods started april with an inventory of 8 sets
of gold clubs:
Country Sporting Goods started April with an inventory of 8 sets of golf clubs that cost a total of $1,192. During April, Country purchased 20 sets of clubs for $3,180. At the end of the month, Country had four sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold...
1. Compare and contrast the direct write-off method and the allowance method for bad debts. At a minimum, please conside...
1. Compare and contrast the direct write-off method and the allowance method for bad debts. At a minimum, please consider the following in your answer: When is the expense for uncollected accounts receivable recognized under each method? Why is the direct write-off method not considered to follow generally accepted accounting. 2.Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased? Choose one of the following depreciation methods to discuss: straight line, units...
Write a method drivingCost() with input parameters drivenMiles, milesPerGallon, and dollarsPerGallo
6.26 LAB: Driving cost - methodsWrite a method drivingCost() with input parameters drivenMiles, milesPerGallon, and dollarsPerGallon, that returns the dollar cost to drive those miles. All items are of type double. If the method is called with 50 20.0 3.1599, the method returns 7.89975.Define that method in a program whose inputs are the car's miles/gallon and the gas dollars/gallon (both doubles). Output the gas cost for 10 miles, 50 miles, and 400 miles, by calling your drivingCost() method three times.Output...
ULT WULL ULRUSWS is incorrect Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the...
ULT WULL ULRUSWS is incorrect Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2012 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables. Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1, 2018,...
september qato 190 Hoool A company that changes from the declining balance method of depreciation for...
september qato 190 Hoool A company that changes from the declining balance method of depreciation for previously recorded assets to the straight line method should report the change as ain a./ change in accounting principle. ( change in accounting estimate prior period adjustment Ud discontinued item 7. The term "comprehensive income" as defined by the FASB a, must be reported on the face of the income statement includes all changes in equity during a period except those resulting from ✓...
Which of the following statements is CORRECT? A) The NPV method is regarded by most academics...
Which of the following statements is CORRECT? A) The NPV method is regarded by most academics as being the best indicator of a project's profitability, hence most academics recommend that firms use only this one method and disregard other methods. B) The NPV method was once the favorite of academics and business executives, but today most authorities regard the MIRR as being the best indicator of a project's profitability. C) A project's NPV depends on the total amount of cash...
Problem IV: (4.5 pts) Woodberry Corp. uses the dollar-value LIFO (DVL) inventory costing method. It has the following normal account balances at 12/31/20 before the year-end adjustment to convert the cost of its inventory to LIFO using the DVL method: Inventory (at FIFO costs) LIFO reserve S 200,000 dr 25,000 cr At the end of 2020, Woodberry computes the cost of its ending inventory using the DVL method to be $160,000 Required: In the journal below, prepare the year-end entry...
POWS WILL Instructions: Using the sum-of-the-years'-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables, Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1, 2018, at a cost...
Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1. 2018, at a cost of $56,000....
Country sporting goods started april with an inventory of 8 sets
of gold clubs:
Country Sporting Goods started April with an inventory of 8 sets of golf clubs that cost a total of $1,192. During April, Country purchased 20 sets of clubs for $3,180. At the end of the month, Country had four sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold...
ULT WULL ULRUSWS is incorrect Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2012 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables. Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1, 2018,...
september qato 190 Hoool A company that changes from the declining balance method of depreciation for previously recorded assets to the straight line method should report the change as ain a./ change in accounting principle. ( change in accounting estimate prior period adjustment Ud discontinued item 7. The term "comprehensive income" as defined by the FASB a, must be reported on the face of the income statement includes all changes in equity during a period except those resulting from ✓...
Which of the following statements is CORRECT? A) The NPV method is regarded by most academics as being the best indicator of a project's profitability, hence most academics recommend that firms use only this one method and disregard other methods. B) The NPV method was once the favorite of academics and business executives, but today most authorities regard the MIRR as being the best indicator of a project's profitability. C) A project's NPV depends on the total amount of cash...
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