Professional Documents
Culture Documents
DATA:
Beginning
Inventory
1st Purchase
nd
2 Purchase
3rd Purchase
UNITS
AVAILABLE
Ending
Inventory
Units Sold
$0
$0
125
275
@
@
$60
$70
=
=
$7,500
$19,250
500
$100
$50,000
900
225
675
76,750
1. Specific Identification
SOLD-> 100 from 1st purchase, SOLD-> 200 from 2nd. SOLD 375 from the 3rd purchase
A. Create the entry to record Cost of Sales under Specific Identification:
DEBIT
Cost of Goods Sold
CREDIT
$57,500
Inventory
$57,500
Ending inventory
value under
$19,250.00
specific
identification
2. FIFO
A. Create the entry to record Cost of Sales under FIFO
DEBIT
Cost of Goods Sold
CREDIT
$54,250.00
Inventory
$54,250.00
3. LIFO
A. Create the entry to record Cost of Sales under LIFO
DEBIT
Cost of Goods Sold
CREDIT
$62,250
Inventory
$62,250
4. Weighted Average
A. Create the entry to record Cost of Sales under Weighted Average
DEBIT
Cost of Goods Sold
$57,564
Inventory
$57,564.00
Problem 2
CREDIT
$ 50,000
$ 25,000
Sales
$ 200,000
Assume the Company has a Gross Profit Percentage of 25%
In the schedule show the detail on how Ending Inventory is calculated:
$75,000.00
$125,000.00
Ending Inventory
(75,000 - $125,000.00)
Estimated Cost of Ending Inventory
Problem 3
($50,000.00)
75,000
December 31st
Opening Balance
Disbursements
Date
12/1/2008
12/2/2008
12/3/2008
12/4/2008
12/5/2008
12/6/2008
12/7/2008
12/8/2008
12/9/2008
12/10/2008
12/11/2008
12/12/2008
12/13/2008
12/14/2008
12/15/2008
12/16/2008
12/17/2008
12/18/2008
12/19/2008
12/20/2008
12/21/2008
CK #
Amount
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
$
$
$
$
$
$
$
$
$
$
$
$
$
123.00
125.46
127.97
130.53
133.14
135.80
138.52
141.29
144.11
147.00
149.94
152.94
155.99
$
$
$
$
$
$
$
$
159.11
162.30
165.54
168.85
172.23
175.67
179.19
182.77
25,000.00
Total
$ (3,171.35)
Deposits
12/1/2008
12/2/2008
12/3/2008
12/4/2008
12/5/2008
12/6/2008
12/7/2008
12/8/2008
12/9/2008
12/10/2008
12/11/2008
12/22/2008
12/23/2008
12/24/2008
12/25/2008
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
555.00
666.00
777.00
111.00
222.00
333.00
444.00
555.00
666.00
777.00
888.00
999.00
111.00
222.00
333.00
Total
$ 7,659.00
Other:
Service Charges
Interest
Net
$
$
(222.00)
555.00
$
333.00
4,820.65
29,820.65
MY COMPANY INC.
Check Book
Opening Balance
Date
12/1/2008
12/2/2008
12/3/2008
12/4/2008
12/5/2008
12/6/2008
12/7/2008
12/8/2008
12/9/2008
12/10/2008
12/11/2008
12/12/2008
12/13/2008
12/14/2008
12/15/2008
12/16/2008
12/17/2008
12/18/2008
12/19/2008
12/20/2008
12/21/2008
12/22/2008
12/23/2008
12/24/2008
12/25/2008
12/26/2008
12/27/2008
12/28/2008
12/29/2008
CK #
Amount
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
$
$
$
$
$
$
$
$
$
$
$
$
$
123.00
125.46
127.97
130.53
133.14
135.80
138.52
141.29
144.11
147.00
149.94
152.94
155.99
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
159.11
162.30
165.54
168.85
172.23
175.67
179.19
182.77
186.43
190.16
193.96
197.84
201.79
205.83
209.95
214.15
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Deposit
555.00
666.00
777.00
111.00
222.00
333.00
444.00
555.00
666.00
777.00
888.00
999.00
333.00
444.00
111.00
222.00
333.00
444.00
555.00
666.00
777.00
999.00
111.00
222.00
333.00
444.00
666.00
777.00
555.00
25,000.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
25,432.00
25,972.54
26,621.57
26,602.04
26,690.90
26,888.10
27,193.58
27,607.29
28,129.18
28,759.18
29,497.25
30,343.31
30,520.32
30,805.21
30,753.91
30,810.37
30,974.52
31,246.29
31,625.61
32,112.42
32,706.65
33,519.23
33,440.07
33,468.11
33,603.27
33,845.48
34,305.65
34,872.70
35,213.56
12/30/2008
129 $
218.43 $
888.00
35,883.13
MY COMPANY INC.
Bank Reconciliation
Balance per the Books:
Add/ (Deduct): Deposits In transit
Date
12/13/2008
12/14/2008
12/18/2008
12/19/2008
12/20/2008
12/21/2008
12/22/2008
12/23/2008
12/24/2008
12/25/2008
12/26/2008
12/27/2008
12/28/2008
12/29/2008
12/30/2008
TOTAL
$35,883.13
Amount
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
333.00
444.00
444.00
555.00
666.00
777.00
999.00
111.00
222.00
333.00
444.00
666.00
777.00
555.00
888.00
MINUS
AMOUNT
121 $
186.43
8,214.00
12/23/2008
12/24/2008
12/25/2008
12/26/2008
12/27/2008
12/28/2008
12/29/2008
12/30/2008
122
123
124
125
126
127
128
129
190.16
193.96
197.84
201.79
205.83
209.95
214.15
218.43
TOTAL
PLUS
1,818.54
Other Items
Service Charges
Interest
TOTAL
BALANCE PER THE BANK
$
$
(222.00)
555.00
$333.00
PLUS
Problem 4
Miscellaeous Expense
$222.00
$222.00
Cash
To record bank service chgs 12/08
Cash
$555.00
$555.00
Interest Revenue
To record interest paid by bank
Miscellaeous Expense
Cash
To offset adding error 12/08 bank statement
Problem 5
0.02
$
Ticket 1
Date: 3/1/09
Paid to Charlie
For Travel
Amount $1,234.00
Approved: Me
Ticket 2
Date: 3/2/09
Paid to Frank
For Travel
Amount $ 330.00
Approved: Me
0.02
Ticket 3
Date: 3/11/09
Paid to Tom
For Office
Supplies
Amount $999.00
Ticket 5
Date: 3/21/09
Paid to Tim
For desk
Amount $699.00
Ticket 7
Date: 3/23/09
Paid to Lilly
For paper
Amount $299.00
Ticket 9
Date: 3/25/09
Paid to you
Replenish
petty cash
Amount - $2,000.00
Ticket 11
Date: 3/27/09
Paid to David
For: Travel
Amount $330.00
Ticket 14
Date: 3/29/09
Amount $110.00
Approved: Me
Approved: Me
Approved: Me
Approved: Me
Approved: Me
Ticket 4
Date: 3/20/09
Paid to Linda
For Lunch
Amount $ 177.00
Ticket 6
Date: 3/22/09
Paid to you
Replenish
petty cash
Amount $ -4,900.00
Ticket 8
Date: 3/24/09
Paid to you
For: snow
removal
Amount $ 880.00
Ticket 10
Date: 3/26/09
Paid Dick
For: Coffee
supplies
Amount $ 80.00
Ticket 12
Date: 3/28/09
Paid Sam
For: Supplies
Amount $ 10.00
Ticket 15
Date: 3/30/09
Amount $ 227.00
Approved: Me
Approved: Me
Approved: Me
Approved: Me
Approved: Me
Paid to Cindy
For: desk pad
Approved: Me
Paid Sam
For: window
washer
Approved: Me
Description
3/1/2009 Travel
Ticket
Debit
$ 1,234.00
3/1/2009 Cash
3/2/2009 Travel
330.00
999.00
177.00
699.00
699.00
3/21/2009 Cash
3/22/2009 Cash
177.00
3/20/2009 Cash
3/21/2009 Desk Expense
1,234.00
999.00
3/11/2009 Cash
3/20/2009 Lunch Expense
$
330.00
3/2/2009 Cash
3/11/2009 Office Supplies
Credit
$ 4,900.00
299.00
3/23/2009 Cash
3/24/2009 Snow Removal Expense
299.00
8.80
8.80
3/24/2009 Cash
3/25/2009 Cash
$ 2,000.00
0 $
3/22/2009
4,900.00
3/25/2009
2,000.00
$ 1,894.00
$ 1,645.00
Office Supplies
699.00
Food Expense
257.00
880.00
$
1,525.00