ACCT 220 Week 3 HomeWork

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ACCT 220 Week 3 HomeWork
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:

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