Question 1: Soundview Centre uses a periodic inventory system. At the end of 2010, the accounting records include the subsequent information:
Evaluate the following for 2010:
Question 2: The perpetual inventory records of Handy Hardware show 150 units of an exacting product on hand, acquired at the subsequent dates and costs:
On June 3, Handy sold 120 units of this product.
Instructions: Determine the cost of goods sold and ending inventory on June 30, considering that Handy uses:
(a) A LIFO flow assumption.
(b) A FIFO flow assumption.
(c) The average cost or moving average flow assumption.
Question 3: On March 24, 2009 Tastee Ice Cream Co. purchased equipment costing $140,000, with a probable life of 5 years and an estimated salvage value of $20,000.
Determine the depreciation expense Tastee would identify on this equipment for each of the five years, assuming:
Straight line depreciation using the half year convention 200% declining balance using the half year convention
Question 4: Given below are some key figures from the balance sheets of Minuteman Gas Company for two successive years:
Dividends of $96,000 were declared and paid in 2010. Evaluate the subsequent:
Briefly comment on the company's long term and short term situation