Paper , Order, or Assignment Requirements

Question 2

XYZ Company uses the periodic method and had the following inventory events during January:

Date	Units Purchased	Unit Cost	Date	Units Sold	Unit Sales Price
Jan. 1	150	$7.00	Jan. 2	100	$10.00
Jan. 5	225	7.20	Jan. 7	125	10.00
Jan. 10	100	7.50	Jan. 12	75	12.00
Jan. 15	150	7.80	Jan. 17	200	12.50
Jan. 20	200	7.95	Jan. 24	150	15.00
Jan. 25	150	8.00
Jan. 30	75	8.20

Note: The January 1 amounts were the beginning inventory and unit value.

(Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.)

Required:

1. Calculate the cost of goods available for sale.
2. Calculate the dollar value of sales.
3. Calculate the value of Ending Inventory and Cost of Goods Sold under the following independent assumptions:
   (1) LIFO method
   (2) FIFO method
   (3) Average-cost method

 

a.     Cost of Goods Available for Sale
b.    Sales
c.     Value of:	Ending Inventory	COGS
(1)   LIFO method
(2)   FIFO method
(3)   Average-cost method

 

 

 

 

 

 

 

 

 

 

 

Question 3

Required: Prepare Acme Supply Company’s general journal entries for the following transactions:

Jan. 1	Accepted RunTimeCo’s 120-day, 10% note as settlement of an outstanding $15,000 account receivable for goods sold last year.
Jan. 15	Purchased $10,000 Equipment from XYZ, signing a 9-month, 12% note.
Jan. 15	Loaned Warner Co. $30,000 cash, accepting a 90-day, 10% note.
Jan. 31	Prepared accrual adjusting entry for any interest revenue.
Apr. 15	Received payment in full from Warner Co. for outstanding note and interest.
May 1	Received payment in full from RunTimeCo for outstanding note and interest.
Oct. 15	Paid XYZ in full.

 

 

Date	Account	Debit	Credit

Question 4:

XYZ Company purchased a refrigerated delivery truck for $65,000 on January 1, 2015. The plan is to use the truck for 5 years and then replace it. At the end of its useful life, the truck is expected to have a salvage value of $10,000. The fiscal year ends December 31.

1. Prepare the depreciation table for XYZ’s truck, assuming that the company uses the straight-line method for depreciation.
2. Prepare the depreciation table for XYZ’s truck, assuming that the company uses the double-declining-balance depreciation method.
3. Compute the depreciation expense for 2015 for XYZ’s truck, assuming the truck has an expected life of 200,000 miles and during 2015 the truck was driven 24,540 miles. Round your depreciation expense per mile to three decimal places.

1. Answer:

Year	Depreciation Expense	Total Accumulated Depreciation	End-of-Year Book Value

1. Answer:

Year	Depreciation Expense	Total Accumulated Depreciation	End-of-Year Book Value

c.

Answer

Question 5

Acme Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA Social Security (6.2%), FICA Medicare (1.45%), state income tax (5%) and federal income tax (15%) withholdings. Additionally, all is subject to employer taxes to include FUTA (0.8%) and SUTA (5.4%) taxes. (Round all calculations to the nearest penny.)

Required:

Prepare the general journal entry to record the employer’s payroll liability.

Prepare the general journal entry to record the employer’s payroll-tax liability.

Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on January 22.

Date	Account	Debit	Credit

Question 6 

At the end of the fiscal 2015 year, Acme Company has the following information: Credit Sales, $2,500,000; Sales Returns and Allowances, $25,000; Accounts Receivable, $200,000; and Allowance for Doubtful Accounts with a Debit, $1,500.

Required:

1. Prepare the general journal entry to record the end-of-the-year adjusting entry if Acme uses 0.5% of Net Credit Sales as the basis for determining Bad-Debt Expense.
2. Prepare the general journal entry to record the end-of-the-year adjusting entry if Acme uses 5% of Accounts Receivable as the basis for determining Bad-Debt Expense.

 

Date	Account	Debit	Credit