Company had the account balances shown below Debit Credit Cash $ 4,800 Accumulated Depreciation - Equipment $ 1,500 Accounts Receivable 3,900 Accounts Payable 3,000 Inventory 1,800* Owner's Capital 27,000 Equipment 21,000 $31,500 $31,500 *Inventory (3,000 x $0.60) The following transactions occurred during December. Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,400 units of inventory on account for $0.90 per unit. (It sold 3,000 of the $0.60 units and 1,400 of the $0.74.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $120. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.80 each. 22 Sold 2,100 units of inventory on account for $0.95 per unit. (It sold 2,100 of the $0.74 units.) Adjustment data: 1. Accrued salaries payable $400. 2. Depreciation $200 per month.
Instructions (a) Journalize the December transactions and adjusting entries, assuming Anastasia uses the perpetual inventory system and FIFO method. (b) Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the accounts mentioned above, use the following additional accounts: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. (c) Prepare an adjusted trial balance as of December 31, 2021. (d) Prepare an income statement for December 2021 and a classified balance sheet at December 31, 2021 (e) Compute ending inventory and cost of goods sold under FIFO, assuming Anastasia Company uses the periodic inventory system. (f) Compute ending inventory and cost of goods sold under LIFO, assuming Anastasia Company uses the periodic inventory system.
TUTORIAL TEST 7 On December 1, 2021, Anastasia TUTORIAL TEST 7 On December 1, 2021, Anastasia Company had the account balances shown below Debit Credit Cash $ 4,800 Ac
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am