The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar mount Ente to account balances and cash outflow with a minUs sian
The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar mount Ente to account balances and cash outflow with a minUs sian
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
Related questions
Question
Answer full question. Answer required a,b,c and e
![Required A
Required B
Required C
Required E
The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the
recognition of cost of goods sold expense, and (5) the payment of income tax expense, Show the amounts of each event in horizontal statements models like the
following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity,
FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar
amount. Enter any decreases to account balances and cash outflow with a minus sign.)
Show less A
pok
THE BRICK COMPANY
Effect of Events on Financial Statements
int
Panel 1: FIFO Cost Flow
Balance Sheet
Income Statement
Cash Flows
Event
Retained
Earnings
Print
No.
Cash
Inventory
Revenue
Expenses
Net Income
%3D
1.
2.
erences
3.
4.
=
5.
+
Bal.
Panel 2: LIFO Cost Flow
1.
+.
=
2.
%3D
3.
%3D
%3D
4.
%3D
5.
Bal.
Required A
Required B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F104cc4da-5790-4f7c-81f0-e67e9718bd7c%2Fr4auwd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required A
Required B
Required C
Required E
The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the
recognition of cost of goods sold expense, and (5) the payment of income tax expense, Show the amounts of each event in horizontal statements models like the
following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity,
FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar
amount. Enter any decreases to account balances and cash outflow with a minus sign.)
Show less A
pok
THE BRICK COMPANY
Effect of Events on Financial Statements
int
Panel 1: FIFO Cost Flow
Balance Sheet
Income Statement
Cash Flows
Event
Retained
Earnings
Print
No.
Cash
Inventory
Revenue
Expenses
Net Income
%3D
1.
2.
erences
3.
4.
=
5.
+
Bal.
Panel 2: LIFO Cost Flow
1.
+.
=
2.
%3D
3.
%3D
%3D
4.
%3D
5.
Bal.
Required A
Required B
![Check my wc
The Brick Company had cash sales of $220,600 for Year 1, its first year of operation. On April 2, the company purchased 185 units of
inventory at $160 per unit. On September 1, an additional 139 units were purchased for $176 per unit. The company had 35 units on
hand at the end of the year. The company's income tax rate is 40 percent. All transactions are cash transactions.
Required
a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second
purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the
amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow.
b. Compute net income using FIFO.
c. Compute net income using LIFO.
e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required E
The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the
recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the
following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity,
FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar
amount. Enter any decreases to account balances and cash outflow with a minus sign.)
Show less
THE BRICK COMPANY](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F104cc4da-5790-4f7c-81f0-e67e9718bd7c%2Fbh9isbi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Check my wc
The Brick Company had cash sales of $220,600 for Year 1, its first year of operation. On April 2, the company purchased 185 units of
inventory at $160 per unit. On September 1, an additional 139 units were purchased for $176 per unit. The company had 35 units on
hand at the end of the year. The company's income tax rate is 40 percent. All transactions are cash transactions.
Required
a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second
purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the
amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow.
b. Compute net income using FIFO.
c. Compute net income using LIFO.
e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required E
The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the
recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the
following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity,
FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar
amount. Enter any decreases to account balances and cash outflow with a minus sign.)
Show less
THE BRICK COMPANY
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