Exercise 2-8 (Essay)Presented below are a number of facts related to Weller, Inc.Assume that...Exercise...

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Accounting

Exercise 2-8 (Essay)
Presented below are a number of facts related to Weller, Inc.Assume that no mention of these facts was made in the financialstatements and the related notes.

Assume that you are the auditor of Weller, Inc. and that you havebeen asked to explain the appropriate accounting and relateddisclosure necessary for each of these items.
(a) The company decided that, for the sake of conciseness, only netincome should be reported on the income statement. Details as torevenues, cost of goods sold, and expenses were omitted.
(b) Equipment purchases of $170,000 were partly financed during theyear through the issuance of a $110,000 notes payable. The companyoffset the equipment against the notes payable and reported plantassets at $60,000.
(c) Weller has reported its ending inventory at $2,100,000 in thefinancial statements. No other information related to inventoriesis presented in the financial statements and related notes.
(d) The company changed its method of valuing inventories fromweighted-average to FIFO. No mention of this change was made in thefinancial statements.
Please Make sure to explain so I can understand. Thanks!

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Answer a According to completely revelation guideline organization ought to unveil every last thing which is identified with business thus organization needs to report all present year incomes and all present See Answer

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In: AccountingExercise 2-8 (Essay)Presented below are a number of facts related to Weller, Inc.Assume that...Exercise 2-8 (Essay)Presented below are a number of facts related to Weller, Inc.Assume that no mention of these facts was made in the financialstatements and the related notes.Assume that you are the auditor of Weller, Inc. and that you havebeen asked to explain the appropriate accounting and relateddisclosure necessary for each of these items.(a)The company decided that, for the sake of conciseness, only netincome should be reported on the income statement. Details as torevenues, cost of goods sold, and expenses were omitted.(b)Equipment purchases of $170,000 were partly financed during theyear through the issuance of a $110,000 notes payable. The companyoffset the equipment against the notes payable and reported plantassets at $60,000.(c)Weller has reported its ending inventory at $2,100,000 in thefinancial statements. No other information related to inventoriesis presented in the financial statements and related notes.(d)The company changed its method of valuing inventories fromweighted-average to FIFO. No mention of this change was made in thefinancial statements.Please Make sure to explain so I can understand. Thanks!

(a)		The company decided that, for the sake of conciseness, only netincome should be reported on the income statement. Details as torevenues, cost of goods sold, and expenses were omitted.
(b)		Equipment purchases of $170,000 were partly financed during theyear through the issuance of a $110,000 notes payable. The companyoffset the equipment against the notes payable and reported plantassets at $60,000.
(c)		Weller has reported its ending inventory at $2,100,000 in thefinancial statements. No other information related to inventoriesis presented in the financial statements and related notes.
(d)		The company changed its method of valuing inventories fromweighted-average to FIFO. No mention of this change was made in thefinancial statements.