Reference no: EM131806531
How do you complete the following adjusting entries with the following transactions or if they do not require entries? I have attached the data for reference:
1. As a control measure, physical inventories are taken on a periodic basis alternating between the raw materials inventory, finished goods inventory and trading goods inventory. Physical inventory of the trading goods inventory was taken at the end of January. It was determined that the value of the trading goods merchandise on hand was $40,710.
2. GBI counted the office supplies on hand after the close of business on the last day of the month and determined the cost of the unused office supplies to be $620.
3. Production Machinery, Equipment and Fixtures were placed in service on January 1, 2008, are expected to last 15 years with no salvage value. The bar-code system has a 5 year life and no salvage value. GBI depreciates fixed assets on a straight-line basis and those assets acquired in the first half of the month are depreciated for the entire month, while fixed assets placed in service during the last half of the month are not depreciated until the second month. Depreciation is rounded to the nearest dollar and assets are depreciated on a monthly basis (i.e. number of days in the month is not of consequence).
How does the EOP, Income Statement, Balance Sheet, and Statement of Cash Flows look like for this problem?