ACC 422 Week 2 Learning Team Assignment Textbook Assignments 1

ACC 422 Week 2 Learning Team Assignment Textbook Assignments 1

Problem 7-1

Francis Equipment Co. closes its books regularly on December 31, but at the end of 2012 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.
1. January cash receipts recorded in the December cash book totaled $45,640, of which $28,000 represents cash sales, and $17,640 represents collections on account for which cash discounts of $360 were given.
2. January cash disbursements recorded in the December check register liquidated accounts payable of $22,450 on which discounts of $250 were taken.
3. The ledger has not been closed for 2012.
4. The amount shown as inventory was determined by physical count on December 31, 2012.

The company uses the periodic method of inventory.

Exercise 8-25
Presented below is information related to Martin Company.

Date
Ending Inventory
(End-of-Year Prices)
Price
Index
December 31, 2009 $80,000 100
December 31, 2010 111,300 105
December 31, 2011 108,000 120
December 31, 2012 122,200 130
December 31, 2013 147,000 140
December 31, 2014 176,900 145

Compute the ending inventory for Martin Company for 2009 through 2014 using the dollar-value LIFO method.