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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.
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ACC 421 Week 5 CPA Practice