A gas absorbs 45 kJ of heat and does 29 kJ of work. Calculate E.

Instructions:

     a. At the end of Year 2021 it was discovered that the year 2020 Ending Inventory (and the year 2021 Beginning Inventory) was overstated by $18,000. This error was not discovered until the accounts had been closed and the financial statements had been prepared at the end of 2021 . Prepare corrected income statements for both 2020 and 2021.

     b. Calculate the sum of 2020 and 2021 net income for the income statements given above and compare this amount to the sum of 2020 and 2021 net income for the corrected income statements prepared in part a. Explain why the sum of the net income for 2020 and 2021 is the same after correcting the inventory error as it was before correcting the inventory error.

Jennie's Books sells discount hard back novels. The inventory, purchases, and sales for a recent month in chronological order are as follows:

Assume that Jennie's Books uses a perpetual inventory system.

 

Compute the cost of goods sold relating to the sales in May and the cost of the ending inventory of Jeannie's Books at May 31, using the following cost flow assumptions:

    a. FIFO

    b. Weighted Average (Round Average Unit Cost calculation to 2 decimal places)

On January 1,2022 , Shella Co. made the purchase of the following equipment for production in its factory.

 

Equipment A: The listed price for this machine was $58,000. In addition to this, Shella Co. had to pay the other fees including: VAT tax of $2,750, freight in expense of $100, shipping insurance of $75, installation of $75 and an estimation of $90 for oil and lubricants for the equipment in the first year of operation. It was estimated by the company that this equipment can be used up to 4 years, with the scrap value being $5,000 at the end of year 4 .

Equipment B: Shella had to pay a total of $120,000 for the purchase of this equipment. While the estimated useful life of this equipment is the same as equipment A, the scrap value is planned to be $10,000 instead.

 

Instructions