The following income statement, statement of cash flows, and additional information are available…

The following income statement, statement of cash flows, and additional information are available for PEK Company:

b. During the year, the company sold 250,000 units at $5 each. c. PEK uses the periodic FIFO method to value its inventory and the straight-line method to depreciate all of its long-term assets. d. During the year-end audit, it was discovered that a January 3, 2017, transaction for the lumpsum purchase of a mixing machine and a boiler was not recorded. The fair market values of the mixing machine and the boiler were $200,000 and $100,000, respectively. Each asset has an estimated useful life of ten years with no residual value expected. The purchase of the assets was financed by issuing a $270,000 five-year promissory note directly to the seller. Interest of 8% is paid annually on December 31.


1. Prepare a revised income statement and a revised statement of cash flows to take into account the omission of the entry to record the purchase of the two assets. (Hint: You will need to take into account any change in income taxes as a result of changes in any income statement items. Assume that income taxes are paid on December 31 of each year.) 2. Assume the same facts as in part (1), except that the company is considering the use of an accelerated method rather than the straight-line method for the assets purchased on January 3, 2017. All other assets would continue to be depreciated on a straight-line basis. Prepare a revised income statement and a revised statement of cash flows assuming that the company decides to use the accelerated method for these two assets rather than the straightline method, resulting in depreciation of $49,091 for 2017. Treat the answers in parts (3) and (4) as independent of the other parts. 3. Assume that PEK decides to use the LIFO method rather than the FIFO method to value its inventory and recognize cost of goods sold for 2017. Compute the effect (amount of increase or decrease) this would have on cost of goods sold, income tax expense, and net income. 4. Assume that PEK failed to record an estimate of bad debts for 2017. (Bad debt expense is normally included in ‘‘other expenses.’’) Before any adjustment, the balance in Allowance for Doubtful Accounts is $8,200. The credit manager estimates that 3% of the $800,000 of sales on account will prove to be uncollectible. Based on this information, compute the effect (amount of increase or decrease) of recognition of the bad debt estimate on other expenses, income tax expense, and net income.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Online Academic Experts
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer 452591, March 18th, 2021
It's the second time I use this service and it does not let me down. Work quality is so good for its price!
Customer 452985, December 3rd, 2021
Thank you. No issues
Customer 453139, April 17th, 2022
Customer 453057, May 23rd, 2022
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
I am beyond eager to write this review for this writer. I received a grade of "Mastered"upon first submission on this assignment. I will shout to the rooftops ENCOURAGING you to hire him. I have used other writers but NONE have delivered such awesome work as this writer and NONE of their prices can compare to his. He does not try to "break the bank" and he works hard; it shows in the final paper and the grade. He is simply,THE BEST HERE!!
Customer 452995, November 16th, 2021
Classic English Literature
It was my first time using such a service. Essay was good and nicely formatted.
Customer 452441, February 16th, 2022
Thank you so much for your help! :)
Customer 453167, May 11th, 2022
English 101
thank you for the excellent work
Customer 452883, October 29th, 2021
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Business Studies
Customer 452985, November 11th, 2021
Love this writer!!! Great work
Customer 452597, April 5th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live ChatWhatsApp