I have completed this assignment, When you do the work can you do the steps too. Id like to see the work done so i can see mistakes if i made them
bobbygogs3r
wit_test_chapters_5_and_6.docxWIT Financial Accounting Test Chapters 5 and 6
1. From the adjusted trial balance for Worker Products Company given below, prepare a multiple-step income statement in good form.
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Worker Products Company Adjusted Trial Balance December 31 |
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Debit |
Credit |
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Cash |
$ 9,400 |
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Accounts receivable |
25,000 |
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Merchandise inventory |
36,000 |
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Office supplies |
900 |
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Store equipment |
75,000 |
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Accumulated depreciation - store equipment |
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$ 22,000 |
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Office equipment |
60,000 |
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Accumulated depreciation -office equipment |
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15,000 |
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Accounts payable |
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42,000 |
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Notes payable |
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10,000 |
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F. Worker, Capital |
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110,700 |
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F. Worker, Withdrawals |
48,000 |
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Sales |
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325,000 |
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Sales discounts |
6,000 |
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Sales returns and allowances |
16,500 |
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Cost of goods sold |
195,000 |
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Sales salaries expense |
32,500 |
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Depreciation expense - store equipment |
11,000 |
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Depreciation expense - office equipment |
7,500 |
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Office supplies expense |
1,300 |
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Interest expense |
600 |
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Totals |
$524,700 |
$524,700 |
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2. From the adjusted trial balance for Worker Products Company given below, prepare the necessary closing entries.
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Worker Products Company Adjusted Trial Balance December 31 |
||
|
|
Debit |
Credit |
|
Cash |
$ 9,400 |
|
|
Accounts receivable |
25,000 |
|
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Merchandise inventory |
36,000 |
|
|
Office supplies |
900 |
|
|
Store equipment |
75,000 |
|
|
Accumulated depreciation - store equipment |
|
$ 22,000 |
|
Office equipment |
60,000 |
|
|
Accumulated depreciation -office equipment |
|
15,000 |
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Accounts payable |
|
42,000 |
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Notes payable |
|
10,000 |
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F. Worker, Capital |
|
110,700 |
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F. Worker, Withdrawals |
48,000 |
|
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Sales |
|
325,000 |
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Sales discounts |
6,000 |
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Sales returns and allowances |
16,500 |
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Cost of goods sold |
195,000 |
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Sales salaries expense |
32,500 |
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Depreciation expense - store equipment |
11,000 |
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Depreciation expense - office equipment |
7,500 |
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Office supplies expense |
1,300 |
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Interest expense |
600 |
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Totals |
$524,700 |
$524,700 |
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3. A company made the following merchandise purchases and sales during the month of May:
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May 1 |
Purchased |
380 units at |
$15 each |
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May 5 |
Purchased |
270 units at |
$17 each |
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May 10 |
Sold |
400 units at |
$50 each |
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May 20 |
Purchased |
300 units at |
$22 each |
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May 25 |
Sold |
400 units at |
$50 each |
There was no beginning inventory. If the company uses the LIFO periodic inventory method, what would be the cost of the ending inventory?
4. A company made the following merchandise purchases and sales during the month of May:
|
May 1 |
Purchased |
380 units at |
$15 each |
|
May 5 |
Purchased |
270 units at |
$17 each |
|
May 10 |
Sold |
400 units at |
$50 each |
|
May 20 |
Purchased |
300 units at |
$22 each |
|
May 25 |
Sold |
400 units at |
$50 each |
There was no beginning inventory. If the company uses the FIFO periodic inventory method, what would be the cost of the ending inventory?
5. Flaxco purchases inventory from overseas and incurs the following costs: the cost of the merchandise is $50,000, credit terms are 2/10, n/30 that apply only to the $50,000; FOB shipping point freight charges are $1,500; insurance during transit is $500; and import duties are $1,000. Flaxco paid within the discount period and incurred additional costs of $1,200 for advertising and $5,000 for sales commissions. Compute the cost that should be assigned to the inventory. A. $50,000 B. $53,000 C. $52,000 D. $51,500 E. $53,200
6. A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? A. $470 B. $490 C. $450 D. $570 E. $520
]
7. Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.
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Date |
Activities |
Units Acquired at Cost |
Units Sold at Retail |
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May 1 |
Beginning Inventory |
150 units @ $10.00 |
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5 |
Purchase |
220 units @ $12.00 |
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10 |
Sales |
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140 units @ $20.00 |
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15 |
Purchase |
100 units @ $13.00 |
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24 |
Sales |
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150 units @ $21.00 |
A. $2,260 B. $3,180 C. $1,860 D. $3,580 E. $2,100
8. Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.
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Date |
Activities |
Units Acquired at Cost |
Units Sold at Retail |
|
May 1 |
Beginning Inventory |
150 units @ $10.00 |
|
|
5 |
Purchase |
220 units @ $12.00 |
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10 |
Sales |
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140 units @ $20.00 |
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15 |
Purchase |
100 units @ $13.00 |
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24 |
Sales |
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150 units @ $21.00 |
A. $2,260 B. $3,180 C. $1,860 D. $3,580 E. $2,100
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