Acc Hw 3

 

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 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-Jan Beginning inventory            3,500  $                     3.00            
14-Jan Bought            1,500  $                     3.15            
05-Feb Sold            1,000              
22-Feb Bought            2,000  $                     3.20            
07-Mar Sold            1,500              
15-Mar Sold            2,000              
05-Apr Bought            1,000  $                     3.25            
10-Apr Sold                800              
12-Apr Sold                800              
22-Apr Sold                500              
04-May Sold                600              
10-May Bought            2,000  $                     3.30            
25-May Sold                500              
                   
LIFO Periodic Inventory (scroll down to see Perpetual input area)