Adjusting Balance Sheet and Income Statement for LIFO to FIFOIn its December 2019 10-K, Phillips 66 reported the following information ($ millions).2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate$52,848$3,398$3,870$2,61022%a. Determine the necessary adjustments to the following balance sheet line items for 2019.Note: Round your answers to the nearest whole dollar.Adjustment (S in millions)Inventories$46,008 xTotal assets%24Deferred tax liabilkies $54,108 x277 xEquity0 xb. Determine the necessary adjustments to the following income statement line items for 2019.Note: Round your answers to the nearest whole dollar.Adjustment ($ in millions)Cost of goods sold%240 xPretax income%240 xIncome tax expense $0 xNet income%24 c. Compute the common-size inventories percentage with LIFO and with FIFO for 2019.Hint: Compute inventory as percent of total assets.Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555 %).Common size inventories percentage with LIFO for 2019Common size inventories percentage with FIFO for 20190 % x0% xDo we believe the difference is material? Yes + v

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Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Inventories %24 6,008 x Total assets %24 54,108 x Deferred tax liabilkies $ 277 x

Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Inventories %24 6,008 x Total assets %24 54,108 x Deferred tax liabilkies $ 277 x

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9PB: Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables....

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Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $41,104 $2,643 $3,010 $2,030 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Inventories Total assets $ $ 3,010 3,010 662 $ 764 x Deferred tax liabilities $ Equity
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Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $46,976 $3,021 $3,440 $2,320 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Inventories Total assets Adjustment ($ in millions) $ $ Deferred tax liabilities $ Equity $ b. Determine the necessary adjustments to the following income statement line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Cost of goods sold $ Pretax income $ Income tax expense $ Net income $ c. Compute the common-size inventories percentage with LIFO and with FIFO for 2019. Hint. Compute inventory as percent of total assets. Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%). Common size inventories percentage…
Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $64,592 $4,154 $4,730 $3,190 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Inventories 0. Total assetS Deferred tax liabilities $ 0. Equity b. Determine the necessary adjustments to the following income statement line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Cost of goods sold Pretax income 0. Income tax expense $ 0. Net income c. Compute the common-size inventories percentage with LIFO and with FIFO for 2019. Hint: Compute inventory as percent of total assets. Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%). Common size inventories percentage…
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Blackmon Corporation’s December 31, 2018, balance sheet disclosed the following information relating to its receiVables: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmon’s December 31, 2019, balance sheet. 3. Next Level Compute Blackmon’s accounts receivable turnover in days, assuming a 360-day business year. what is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
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