1. (20 pts) The financial statements using FIFO of Grady Company for 2016 and 2017...
90.2K
Verified Solution
Link Copied!
Question
Accounting
1. (20 pts) The financial statements using FIFO of Grady Company for 2016 and 2017 appear below:
Dec 31, 2017 Dec 31, 2016
Cash $10,000 $15,000
Receivables 12,000 10,000
Inventories (FIFO) 21,000 18,000
Other Assets 30,000 20,000
$73,000 $63,000
Capital Stock $30,000 $30,000
Retained Earnings 43,000 33,000
$73,000 $63,000
Income $ 10,000 $ 10,000
Retained Earnings 1/1 $ 33,000 $ 33,000
Dividends 0 ( 10,000)
Retained Earnings 12/31$ 43,000 $ 33,000
Grady changed to LIFO at the beginning of 2017. December 31 inventories at LIFO were $14,000 for 2016 and $20,000 for 2017. The beginning inventory of 2016 was zero.
A. Recast the above Income and Retained Earnings statement for 2017 under LIFO, assuming that 2017 will be shown alone and without any comparison to 2016.
B. Journalize the prior period correction at January 1, 2017.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
