RequirementGeneralJournalLIFO reserve is:GeneralLedgerTrial BalanceUsing the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimalplace.)Analyze the following for Displays Incorporated:(a) Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assumingthe ending balance of inventory under LIFO would have been $114,000, calculate the LIFO reserve.Ending inventory using dollar-value LIFO:IncomeStatement1. Inventory turnover ratio2. Average days in inventory3. Gross profit ratioBalance Sheet Analysis(b) Assume Displays Incorporated $77,000 beginning balance of inventory comes from the base year with a cost index of 1.00. Thecost index at the end of 2021 of 1.1. Calculate the amount the company would report for inventory using dollar-value LIFO.(c) Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO)instead of FIFO in periods of rising inventory costs and stable inventory quantities.< Balance SheetAnalysis >Prev18 of 26▬Next > On January 1, 2021, Displays Incorporated had the following account balances:Debit41,00038,00044,00077,000246,000AccountsCashAccounts receivableSuppliesInventoryLandAccounts payableNotes payable (5%, due next year)Common stockRetained earningsTotals$Credit$ 56,00039,000205,000146,000$ 446,000 $ 446,000From January 1 to December 31, the following summary transactions occurred:a. Purchased inventory on account for $349,000.b. Sold inventory on account for $665,000. The cost of the inventory sold was $329,000.c. Received $594,000 from customers on accounts receivable.d. Paid freight on inventory received, $43,000.e. Paid $339,000 to inventory suppliers on accounts payable of $347,000. The difference reflects purchase discounts of $8,000.f. Paid rent for the current year, $61,000. The payment was recorded to Rent Expense.g. Paid salaries for the current year, $169,000. The payment was recorded to Salaries Expense.Year-end adjusting entries:a. Supplies on hand at the end of the year are $8,000.b. Accrued interest expense on notes payable for the year.c. Accrued income taxes at the end of December are $37,000.

The dollar- value method of valuing LIFO inventories is a method of determining cost by using base…

sing the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimal lace.) Analyze the following for Displays Incorporated: Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming e ending balance of inventory under LIFO would have been $114,000, calculate the LIFO reserve. FO reserve is: Assume Displays Incorporated $77,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The st index at the end of 2021 of 1.1. Calculate the amount the company would report for inventory using dollar-value LIFO. ding inventory using dollar-value LIFO: Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO) stead of FIFO in periods of rising inventory costs and stable inventory quantities. Inventory turnover ratio Average days in inventory Gross profit ratio < Balance Sheet Analysis >

sing the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimal lace.) Analyze the following for Displays Incorporated: Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming e ending balance of inventory under LIFO would have been $114,000, calculate the LIFO reserve. FO reserve is: Assume Displays Incorporated $77,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The st index at the end of 2021 of 1.1. Calculate the amount the company would report for inventory using dollar-value LIFO. ding inventory using dollar-value LIFO: Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO) stead of FIFO in periods of rising inventory costs and stable inventory quantities. Inventory turnover ratio Average days in inventory Gross profit ratio < Balance Sheet Analysis >

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 3MC: Prince Corporations accounts provided the following information at December 31, 2019: What should be...

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