ACC 545 Jamona Corporation

As noted in the Jamona Corporation document, the bonds are classified as available-for-sale. They will be classified as either the short-term or long-term assets based on the sales intention of management. These available-for-sale investments should be valued and shown as fair market. Any gains or losses should be recorded as an unrealized gain or loss under stockholder’s equity. No recording of the security on the income statement until the securities are sold. See attached schedule showing the financial statement recording of the bond.

Inventory

FIFO Perpetual

Beginning Inventory balance shows 600 units at $8.00 for a total of $4,800.

Purchases

Inventory $39,800

Accounts Payable $39,800

Sales

Accounts Receivable $26,600

Sales $26,600

Cost of Goods Sold $26,600

Inventory $26,600

No year-end adjusting journal entry needed, as the ending inventory is properly stated at $18,000

FIFO Periodic
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