My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
On 1 January, Stan and Oliver each started a business by investing E100 in cash, and then immediately purchased one widget, which at that date could have been resold for E120. Stan sold his widget on 31 March for E130, but on 1 April discovered that he needed to pay E115 to buy another, which he did. On 30 June this was sold for E140, and a new one bought on 1 July for E125. On 29 September this was sold for E150, and a replacement purchased on 30 September for E130, on which date the new one could have been sold for E160. Oliver had been less active and had merely kept his first widget and read the newspaper. Both have decided to adopt 30 September as their accounting date, and come to you for accounting services. All widgets are identical. Replacement costs changed on 31 March, 30 June, 29 September. How would the above appear under: (a) historical cost (b) replacement cost (c) net realizable value. You may find it helpful to do this by using a table with each date on the left and columns for Cash, Inventory, Profit, Holding gains, etc. across the top.
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