Accounting Paper
Pick ONE of these questions and write a 350-500 word paper on this.
1. Calculate the ending inventory under each of the following methods given the information below about purchases and sales during the year. Assume a periodic inventory system.
April 1 Beginning inventory 20 units @ $30
11 Purchases 70 units @ $32
21 Purchases 50 units @ $35
Sales for April: 115 units
a. ________ FIFO
b. ________ LIFO
c. ________ Weighted-average
2. Rockwell Industries purchased a plant asset to be used in its business. The expenditures included:
Cost of machine $8,000
Special concrete base to support machine $500
Freight charges $1,000
Repair cost of damage incurred during installation $300
The Machine account will be debited for ________.
3. List and discuss the following:
a. Rights of common stockholders
b. Rights of preferred stockholders