Reference no: EM131795687

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.

Baltimore Glass Company
Trial Balance
December 31, 2015
Acct. No.	Account Title	Debit	Credit
101	Cash	88,450
110	Accounts Receivable	195,613
120	Merchandise Inventory	256,250
125	Supplies on Hand	3,252
130	Prepaid Insurance	3,500
131	Prepaid Rent	7,500
150	Equipment	175,285
160	Accumulated Depreciation		24,260
202	Accounts Payable		72,555
210	Wages Payable		-
301	Capital Stock		220,000
302	Retained Earnings, January 1		211,144
401	Sales		998,250
405	Sales Returns and Allowances	5,145
410	Interest Income		1,500
500	Purchases	560,880
501	Purchases Discounts		4,080
502	Purchases Returns and Allowances		1,200
505	Freight In	4,580
520	Advertising Expense	1,000
530	Sales Salaries Expense	88,600
532	Supplies Expense	-
540	Office Salaries Expense	124,500
550	Utilities Expense	8,594
555	Insurance Expense	-
560	Professional Fees Expense	3,000
570	Depreciation Expense	-
580	Interest 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 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.

		units	price	cost
01-Jan	Beginning inventory	350	$3	$1,050
	Purchases:
14-Jan	Purchased	150	$3.15	472.5
22-Feb	Purchased	200	3.2	640
05-Apr	Purchased	100	3.25	325
10-May	Purchased	200	3.3	660
	Total Purch	650

	Total units sold:
05-Feb	Sold	100
07-Mar	Sold	350
10-Apr	Sold	210
25-May	Sold	110
		770

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