MODR 1760 Study Guide - Hate Speech, Special Pleading, Hasty Generalization

Avant Corporation’s November inventory activity is as follows.Avant uses a perpetual inventory system.

Date Transaction Units Unit cost TotalCost

11/1 Beginning inventory 32 $55 $1760

11/7 Purchase 45 $60 $2,700

11/9 Sale 50

11/14 Purchase 52 $65 $3,380

11/30 Sale 61

Required:

Calculate the cost of goods sold and ending inventory for FIFOand LIFO. Round average unit costs to the nearest cent and cost ofgoods sold and inventory values to the nearest dollar.

FIFO Cost of Goods Sold ?

FIFO Ending Inventory?

LIFO Cost of Goods Sold?

LIFO Ending Inventory?

Adjusting Entries for Interest
At December 31, 2011, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Portland also had two notes payable outstanding (notes 3 and 4). These notes are described below.

Required

a. Prepare the adjusting entries for interest at December 31, 2011.
b. Assume that the adjusting entries were made at December 31, 2011, and that no adjusting entries were made during 2012. Prepare the 2012 journal entries to record payment of the notes that were outstanding at December 31, 2011.
c. Prepare the adjusting entries for interest at December 31, 2012.
Round answers to nearest dollar. Use 360 days for interest calculations when applicable.

1.Marty purchased a new 5 year class asset on March of this year. The asset was listed property (not an auto). It was used for business 60% of the time and personal use for the rest. The asset cost $120,000. Marty made the Sec 179 election. The income before the Sec 179 election was $200,000. What were the total deductions with respect to the asset for this year?

2.David purchased a factory building on November 15, 1999, for $5,000,000. He sells the factory building on February 2, 2012. Determine the cost recovery deduction for the year of the sale.