Reference no: EM131113117

Problem 1 - Periodic Inventory - FIFO, LIFO, Weighted Average (WA)

Salandra Inc. buys engines, and then installs them in dirt bikes for weekend race enthusiasts. Inventory records of the engines for 2015 are shown below                                                                                                          

Part a. Assuming the Periodic System and FIFO, calculate Cost of Goods Sold and Ending Inventory.

Part b. Assuming the Periodic System and LIFO, calculate Cost of Goods Sold and Ending Inventory.

Problem 2 - Salandra Inc. buys engines, and then installs them in dirt bikes for weekend race enthusiasts. Inventory records of the engines for 2015 are shown below                                                                                                            

Part a. Assuming the Perpetual System and LIFO, calculate Cost of Goods Sold and Ending Inventory      

Part b. Assuming the Perpetual System and WA, calculate Cost of Goods Sold and Ending Inventory       

Problem 3 - Review the unadjusted trial balance below and prepare adjusting journal entries to record the various described items below. Record in the space provided at the bottom of this spreadsheet.  After completing journal entries, complete the adjusted trial balance below.  Lastly complete the income statement, balance sheet and statement of retained earnings. The balance sheet must balance.  The accounting equation is Assets = Liabilities + Equity.                                                                                                       

1. Baltimore Corporation's equipment had an original life of 140 months, and the straight-line depreciation method is used. As of January 1, the equipment was 40 months old.  The equipment will be worthless at the end of its useful life.

2. As of the end of the month, Baltimore Corporation has provided services to customers for which the earnings process is complete. Formal billings are normally sent out on the first day of each month for the prior month's work.  January's unbilled work is $25,000.

3. Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500.

4. A review of supplies on hand at the end of the month revealed items costing $3,500.

5. The $2,400 balance in prepaid insurance was for a 6-month policy running from January 1 to June 30.

6. The unearned revenue was collected in December of 2014.  60% of that amount was actually earned in January, with the remainder to be earned in February.

7. The loan accrues interest at 1% per month.  No interest was paid in January.

8. At month end, salaries of $2,120 have been earned but not paid.

Attachment:- Assignment.rar