Assignment
Problem 1
There are two homework problems this week. The first is below and the second one is on the second tab at the bottom left of the screen
Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries.
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Baltimore Glass Company
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Trial Balance
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December 31, 2015
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Acct. No.
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Account Title
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Debit
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Credit
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101
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Cash
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88,450
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110
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Accounts Receivable
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195,613
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120
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Merchandise Inventory
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256,250
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125
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Supplies on Hand
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3,252
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130
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Prepaid Insurance
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3,500
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131
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Prepaid Rent
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7,500
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150
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Equipment
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175,285
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160
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Accumulated Depreciation
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24,260
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202
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Accounts Payable
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72,555
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210
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Wages Payable
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-
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301
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Capital Stock
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220,000
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302
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Retained Earnings, January 1
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211,144
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401
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Sales
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998,250
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405
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Sales Returns and Allowances
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5,145
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410
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Interest Income
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1,500
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500
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Purchases
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560,880
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501
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Purchases Discounts
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4,080
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502
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Purchases Returns and Allowances
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1,200
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505
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Freight In
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4,580
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520
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Advertising Expense
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1,000
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530
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Sales Salaries Expense
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88,600
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532
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Supplies Expense
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-
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540
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Office Salaries Expense
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124,500
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550
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Utilities Expense
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8,594
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555
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Insurance Expense
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-
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560
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Professional Fees Expense
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3,000
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570
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Depreciation Expense
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-
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580
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Interest Expense
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6,840
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1,532,989
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1,532,989
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Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2016 rent ---No adjustment needed, because $7500 will be used in the future period as of 12/31/2015.
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet.--Under Periodic method, Inventory account is never recorded during the period: PURCHASE ↑, A/P ↑.
Additional Info:
8. A physical count of inventory shows a value of $219,100. (The periodic inventory method is used.) -- No adjustment needed. This will be used as Ending Inventory to compute Cost of Goods Sold in Income Statement.
Do the following requirements below. Create proper headings for each statement.
1. Record adjusting journal entries from information above. It is possible that an item may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made
3. Prepare a classified income statement. Supplies is a sales expense. January 1, 2015 merchandise beginning inventory was 256,250.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries
Problem 2
Compute the ending inventory cost and Cost of Goods Sold using FIFO, LIFO, Weighted-Average Cost method.
(This company uses periodic inventory method in handling inventory.)
Ending Inventory: 350+650-770=230 units.
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units
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price
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cost
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01-Jan
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Beginning inventory
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350
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$3
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$1,050
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Purchases:
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14-Jan
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Purchased
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150
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$3.15
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472.5
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22-Feb
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Purchased
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200
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3.2
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640
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05-Apr
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Purchased
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100
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3.25
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325
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10-May
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Purchased
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200
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3.3
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660
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Total Purch
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650
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Total units sold:
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05-Feb
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Sold
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100
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07-Mar
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Sold
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350
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10-Apr
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Sold
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210
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25-May
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Sold
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110
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770
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Required:
1. Determine Cost of Goods Available for Sale for the period January~May.
2. Determine the ending inventory cost under FIFO (first-in, first-out).
3. Determine the ending inventory cost under LIFO (last-in, first-out).
4. Determine the ending inventory cost under weighted-average cost method.
Attachment:- Accounting-Assignment.rar