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P5-3 (Balance Sheet Adjustment and Preparation) The adjusted trial
balance of Eastwood Company andother related information for the
year 2014 are presented as follows.
Additional information:
1. The LIFO method of inventory value is used.
2. The cost and fair value of the long-term investments that consist of
stocks and bonds is the same.
3. The amount of the Construction in Progress account represents the
costs expended to date on a
building in the process of construction. (The company rents factory
space at the present time.) Theland on which the building is being
constructed cost $85,000, as shown in the trial balance.
4. The patents were purchased by the company at a cost of $40,000
and are being amortized on a
CA24-2 (Disclosures Required in Various Situations) Ace Inc.
produces electronic components for sale tomanufacturers of radios,
television sets, and digital sound systems. In connection with her
examination ofAce’s financial statements for the year ended
December 31, 2015, Gloria Rodd, CPA, completed field work2 weeks
ago. Ms. Rodd now is evaluating the significance of the following
items prior to preparing her auditor’sreport. Except as noted, none of
these items have been disclosed in the financial statements or notes.
P24-2 (Segmented Reporting) Cineplex Corporation is a diversified
company that operates in five differentindustries: A, B, C, D, and E.