amount should be classified as cash on Smith ' s balance sheet at December 31, year 1?
Question 11
At the end of the current year( calendar-fiscal year), a creditor firm ' s 6 % note receivable balance is $ 10,000. Two years remain in the note term. Interest is due each December 31. The debtor ' s financial position has deteriorated causing the creditor to reevaluate the note. After careful consideration, the creditor believes that only 60 % of the principal($ 10,000) will be collected at the end of the term. The only interest expected to be received is 2 % of the original principal for one year, also to be collected at the end of the term. At the end of the current year, what amount of expense or loss is recognized by the creditor for this loan impairment? The present value of $ 1 two years hence at 6 % is. 89, and at 2 % is. 961.
Question 12
Hutch, Inc. uses the conventional retail inventory method to account for inventory. The following information relates to 2004 operations: What amount should be reported as cost of sales for 2004?
Question 13
Trans Co. uses a periodic inventory system. The following are inventory transactions for the month of January: Trans uses the average pricing method to determine the value of its inventory. What amount should Trans report as cost of goods sold on its income statement for the month of January?