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Net Income $ 2,200.00 $ 2,000.00 $ 1,870.00

The document contains income statements and financial reports for RAMIREZ CO for the years 2008-2010 and 2017-2019 comparing average and FIFO inventory methods. It also contains income statements for CARLTON CO for 2018-2019 and adjustments made for a change to the FIFO method. Finally, it shows depreciation expense calculations for equipment and a building.

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Mohamad Faisal
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25 views5 pages

Net Income $ 2,200.00 $ 2,000.00 $ 1,870.00

The document contains income statements and financial reports for RAMIREZ CO for the years 2008-2010 and 2017-2019 comparing average and FIFO inventory methods. It also contains income statements for CARLTON CO for 2018-2019 and adjustments made for a change to the FIFO method. Finally, it shows depreciation expense calculations for equipment and a building.

Uploaded by

Mohamad Faisal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

a Average metode c

RAMIREZ
Income Statement
For the year ended 31 December
2008 2009 2010
Sales $ 4,000.00 $ 4,000.00 $ 4,000.00
Cost of good sold $ 800.00 $ 1,000.00 $ 1,130.00
Operating expense $ 1,000.00 $ 1,000.00 $ 1,000.00 d
Net income $ 2,200.00 $ 2,000.00 $ 1,870.00

Fifo metode
RAMIREZ CO
Income Statement
For the year ended 31 December
2017 2018 2019
Sales $ 4,000 $ 4,000 $ 4,000
Cost of good sold $ 820 $ 940 $ 1,100
Operating expense $ 1,000 $ 1,000 $ 1,000
Net income $ 2,180 $ 2,060 $ 1,900

b RAMIREZ CO
Income Statement
2019 2018
Sales $ 4,000 $ 4,000
Cost of good sold $ 1,100 $ 940
Operating expense $ 1,000 $ 1,000
Net income $ 1,900 $ 2,060
2019 2018
Average Fifo Difference Average Fifo Difference
Inventory $ 320 $ 390 $ 70 $ 200 $ 240 $ 40
RE $ 6,070 $ 6,140 $ 70 $ 4,200 $ 4,240 $ 40
Cost of good sold $ 1,130 $ 1,100 $ 30 $ 1,000 $ 940 $ 60
Net income $ 1,870 $ 1,900 $ 30 $ 2,000 $ 2,060 $ 60

2019 2018
RE 1 Jan (Report) $ 2,200
(-) Fifo $ 20
RE 1 Jan (Adjust) $ 4,240 $ 2,180
Net income $ 1,900 $ 2,060
RE 31 Dec $ 6,140 $ 4,240
a CARLTON CO b
Income Statement
For the Year Ended
2019 2018
Sales $ 3,000 $ 3,000 c
Cost of good sold $ 1,100 $ 940
Operating expenses $ 1,000 $ 1,000
Income $ 900 $ 1,060
Profit expense $ 48 $ 50
Net income $ 852 $ 1,010
2019 with fifo $ 45
Difference in profit sharing 2018 $ 3
$ 48

CARLTON CO
Retained Earning Statement
For the Year Ended
RE Jan 1 (Report) $ 8,000
Effect of change to FIFO $ 57
RE Jan 1 (Adjust) $ 8,057
Net income $ 855
Dividen $ 2,500
RE 31 Dec $ 6,412
Depreciation 2016 $ 150,000
Depreciation 2017 $ 120,000
Depreciation 2018 $ 90,000
$ 360,000
Cost equipment $ 465,000
Depreciation to date $ 360,000
Book value $ 105,000
Depreciation cost $ 90,000
a Depreciation Expense 2019 $ 45,000
Acc Depreciation building $ 45,000
Cost building $ 780,000
Depreciation to date 78000
Book value $ 702,000

b Depreciation Expense 2019 $ 18,973


Acc Depreciation building $ 18,973

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