1/ Bob Company has the following balances on January 31, 2013:
Cash $6,000
Supplies 900
Prepaid Insurance 4,800
Equipment 6,000
Accumulated Depreciation - Equipment 500
Accounts Payable 1,800
Notes Payable 2,600
Bob, Capital 9,000
Bob, Drawings 1,200
Service Revenue 6,000
Rent Expense 1,000
All of the accounts have normal balances. Additional information for the month of January resulted in the following adjusting entries:
|
Date
|
Account
|
Debit
|
Credit
|
|
January 31
|
Supplies Expense
|
300
|
|
|
Supplies
|
|
300
|
|
|
|
|
|
January 31
|
Insurance Expense
|
400
|
|
|
Prepaid Insurance
|
|
400
|
|
|
|
|
|
January 31
|
Depreciation Expense - Equipment
|
100
|
|
|
Accumulated Depreciation - Equipment
|
|
100
|
|
|
|
|
|
January 31
|
Utilities Expense
|
200
|
|
|
Accounts Payable
|
|
200
|
|
|
|
|
|
|
|
|
Instructions: Prepare in journal form, without explanation, the end of month closing entries for Bob Company.
2/The following information is available for Bob Company:
Beginning inventory 300 units at $3
First purchase 800 units at $4
Second purchase 100 units at $4.60
Assume that Bob Company uses a periodic inventory system and that there are 400 units left at the end of the month.
Instructions: Compute the cost of ending inventory and Cost of Goods Sold under each of the following methods: LIFO, FIFO, Average Cost.
a) LIFO Ending Inventory Cost =
COGS =
(b) FIFO Ending Inventory Cost =:
COGS =
(c) Average Cost Ending Inventory =
COGS =