Uop acc-290-final-exam-guide
B. Compute the gross profit (loss) on Thompson Plumbings Trans.pdf
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B. Compute the gross profit (loss) on Thompson Plumbing\'s Transactions during September and October if a cash-basis accounting system was used. D. Assume that the fair value of Thompson Plumbing\'s Inventory at October 31 is $750,000. A potential lender asks Thompson Plumbing to prepare a fair-value-based balance sheet . Prepare the journal entry to reflect inventory at fair value. Solution a. Gross Profit on Thompson Plumbing\'s Transaction for September and October : b. Cash Basis Accounting System recognizes income only when Payment is received and expenses only when payment is made , accordingly Gross Profit(loss) for September and October : d.SeptemberOctoberTotalReceipts$ 150,000.00$ 375,000.00$ 525,000.00Less : Payment$ 100,000.00$ 250,000.00$ 350,000.00Gross Profit/(Loss)$ 50,000.00$ 125,000.00$ 175,000.00.
B. Compute the gross profit (loss) on Thompson Plumbings Trans.pdf
- B. Compute the gross profit (loss) on Thompson Plumbing's Transactions during September and October if a cash-basis accounting system was used. D. Assume that the fair value of Thompson Plumbing's Inventory at October 31 is $750,000. A potential lender asks Thompson Plumbing to prepare a fair-value-based balance sheet . Prepare the journal entry to reflect inventory at fair value. Solution a. Gross Profit on Thompson Plumbing's Transaction for September and October : b. Cash Basis Accounting System recognizes income only when Payment is received and expenses only when payment is made , accordingly Gross Profit(loss) for September and October : d.SeptemberOctoberTotalReceipts$ 150,000.00$ 375,000.00$ 525,000.00Less : Payment$ 100,000.00$ 250,000.00$ 350,000.00Gross Profit/(Loss)$ 50,000.00$ 125,000.00$ 175,000.00