Apply a bead of glue along one side of center piece of wood (Image 1). Quickly spread glue with a fingertip then lay it flat and butt against right-side piece (Image 2). Apply glue to right side of left piece, spread with fingertip and butt against left side of center piece (Image 3). Make sure edges are lined up.
To figure taxable income, you must value your inventory at the beginning and end of each tax year. To determine the value, you need a method for identifying the items in your inventory and a method for valuing these items.
You need to reduce your inventory for the value of the items sold, with the offsetting entry to a cost-of-goods sold account. Your cost-of-goods sold account is an income statement account. You have now affected your profit and loss.HARE SHARE TWEET EMAIL. Inventory is an asset and as such, it belongs on your statement of assets and liabilities. Because assets do not appear on the profit and loss statement, the mechanics involved in inventory account can be confusing.