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Accounting homework help




Question;1.;Iowa;Steakhouse opened a new restaurant on the site of an existing building. It paid;the owner $520,000 for the land and building, of which it attributes $104,000;to the land and $416,000 to the building. Iowa incurred legal costs of $25,200;to conduct a title search and prepare the necessary legal documents for the;purchase. It then paid $71,800 to renovate the building to make it suitable for;Iowa?s use. Property and liability insurance on the land and building for the;first year was $24,000, of which $8,000 applied to the period during renovation;and $16,000 applied to the period after opening. Property taxes on the land and;building for the first year totaled $30,000, of which $10,000 applied to the;period during renovation and $20,000 applied to the period after opening.;Calculate the amounts that Iowa Steakhouse should include in the Land account;and in the Building account. (10 points);2.;Sears;reports in millions of dollars on its balance sheet for year-end Year 6 and;Year 5 as follows;Year 6;Year 5;Credit Card Receivables;27,371;24,932;Less: Allowance for Uncollectibles;(821);(808);It reports charge-offs [synonym for write-offs] of accounts;receivable during Year 6 of 4.5 percent of its average gross receivables of;$26,000 million and that Bad Debt Expense is 3.5 percent of credit card sales.;What were Sears' credit card sales for Year 6? (6 points);3.;For the;following six items, assume that Talbot Company, a growing profitable company;has large and growing inventories. Assume that Talbot Company has been using a;FIFO cost flow assumption and plans to switch to LIFO for both financial;reporting and tax reporting. Assume that Talbot pays all income taxes;currently, as accrued, in cash.;Required;Fill in each of the;blanks below with one of these: larger, smaller, unchanged, or insufficient;(information given to answer question). Several years after the switch from;FIFO to LIFO: (12 points);1.;Working capital will be __________.;2.;Accounts payable will be __________.;3.;On the statement of cash flows, cash provided by operating;activities will be ________.;4.;Total shareholders' equity will be __________.;5.;Deferred tax balance on the balance sheet will be __________.;6.;Inventory turnover will be __________.;4.;Inventory flows for Toy Elmo;Company for the month of January are as follows;# of units;Unit cost;Beginning;inventory*;250;$1.00;Purchases;January;3;100;1.10;January;15;150;1.15;January;17;300;1.05;Sales;January;5;200;January;18;100;January;24;150;*Assume;the same for FIFO, LIFO, and weighted average cost flow assumptions.;Required;Compute;the cost of goods sold and ending inventory for the Toy Elmo Company using cost;flow assumption and the following assumptions: (18 points);a.;FIFO;under a periodic inventory system;b.;LIFO;under a periodic inventory system;c.;Weighted;average under a periodic inventory system;d.;FIFO;under a perpetual inventory system;e.;LIFO;under a perpetual inventory system;f.;Weighted;average under a perpetual inventory system


Paper#49780 | Written in 18-Jul-2015

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