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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.
       
Baltimore Glass Company   
Trial Balance   
December 31, 2015   
       
Acct.      
No.Account TitleDebitCredit   
101Cash          88,450    
110Accounts Receivable       195,613    
120Merchandise Inventory       256,250    
125Supplies on Hand            3,252    
130Prepaid Insurance            3,500    
131Prepaid Rent            7,500    
150Equipment       175,285    
160Accumulated Depreciation             24,260   
202Accounts Payable             72,555   
210Wages Payable                       -      
301Capital Stock           220,000   
302Retained Earnings, January 1           211,144   
401Sales           998,250   
405Sales Returns and Allowances            5,145    
410Interest Income                1,500   
500Purchases       560,880    
501Purchases Discounts                4,080   
502Purchases Returns and Allowances                1,200   
505Freight In            4,580    
520Advertising Expense            1,000    
530Sales Salaries Expense          88,600    
532Supplies Expense                   -       
540Office Salaries Expense       124,500    
550Utilities Expense            8,594    
555Insurance Expense                   -       
560Professional Fees Expense            3,000    
570Depreciation Expense                   -       
580Interest Expense            6,840    
      1,532,989      1,532,989   
       
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 2015 rent      
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.
8. A physical count of inventory shows a value of $219,100.  The periodic inventory method is used. 
       
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 inventory was $219,115. 
4. Prepare a statement of retained earnings     
5. Prepare a classified balance sheet     
6. Prepare closing journal entries     
       

 

Compute the ending inventory using LFIO for both the  periodic and the perpetual methods below:  
          
   units  price       
01-JanBeginning inventory           3,500 $                     3.00      
14-JanBought           1,500 $                     3.15      
05-FebSold           1,000       
22-FebBought           2,000 $                     3.20      
07-MarSold           1,500       
15-MarSold           2,000       
05-AprBought           1,000 $                     3.25      
10-AprSold               800       
12-AprSold               800       
22-AprSold               500       
04-MaySold               600       
10-MayBought           2,000 $                     3.30      
25-MaySold               500       
          
LIFO Periodic Inventory (scroll down to see Perpetual input area)     
    • 9 years ago
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