Accounting methods

Topics: Generally Accepted Accounting Principles, Balance sheet, Accounts receivable Pages: 6 (810 words) Published: October 31, 2014

Question 1: Suggested time 45 minutes: 40% points
a. General Journal Entries:
DateAccountDebitCredit
Dec.6 Salaries and wages Payable 1,000
Salaries and wages Expense600
Cash$1,600
Dec.8Cash$1,900
Account Receivable $1,900
Dec. 10Cash$6,300
Sales Revenue$6,300
Cost of Goods Sold$4,100
Inventory $4,100
Dec. 13Inventory$9,000
Account Payable$9,000
Dec. 15Supplies$2,000
Cash$2,000
Dec. 18Account Receivable$12,000
Sales Revenue$12,000

Cost of Goods Sold$8,000
Inventory$8,000
Dec. 20Salaries and wages Expense$1,800
Cash$1,800
Dec. 23Account Payable$9,000
Cash$8,820
Inventory$180
Dec. 27Cash$11,640
Sales Discount$360
Account Receivable$12,000

Answer Sheet Page 2 of 6 .Fa.14Final Exam

DateAccountDebitCredit

b. Adjusting Entries:
DateAccountDebitCredit
1. Salaries and wages Expense $800
Salaries and wages payable$800
2.Depreciation Expense$200
Accumulated Depreciation - Equipment$200
3.Supplies Expense$1,700
Supplies$1,700

Answer Sheet Page 2 of 6 .Fa.14Final Exam

c. Adjusted Trial Balance:
Flip Distributing Company
Adjusted Trial Balance
December 31, 2014
Account TitlesDebitCredit
Cash$12,820
Account Receivable$2,700
Inventory$8,720
Supplies$1,500
Equipment$22,000
Accumulated Depreciation - Equipment$2,400
Accounts Payable$4,500
Salaries & Wages Payable$800
Owner's Capital$39,300
Sales Revenue$18,300
Sales Discount$360
Cost of Goods Sold$12,100
Salaries and wages Expense$3,200
Supplies Expense$1,700
Depreciation Expense$200
$65,300$65,300

Answer Sheet Page 2 of 6 .Fa.14Final Exam

d. Classified Balance Sheet:
Flip Distributing Company
Balance Sheet
December 31, 2014
Assets
Current Assets
Cash$12,820
Account Receivable$2,700
Inventory$8,720
Supplies$1,500
Total current assets $25,740
Property, Plant and Equipment
Equipment$22,000
Less: Accumulated Depreciation - Equipment$2,400$19,600
Total Assets$45,340

Liabilities & Equity
Current Liabilities
Accounts Payable$4,500
Salaries & Wages Payable$800
Total current liabilities$5,300
Total liabilities $5,300
Owner’s Equity
Owner's Capital$40,040
Total liabilities and Owner’s Equity$45,340
e. Closing Entries:

Dec.31Sales Revenue$18,300
Income Summary$18,300
Income Summary$17,560
Sales Discount$360
Cost of Goods Sold$12,100
Salaries and wages Expense$3,200
Supplies Expense$1,700
Depreciation Expense$200
Income Summary$740
Owner's Capital$740

Answer Sheet Page 2 of 6 .Fa.14Final Exam

Question 2: Suggested time 15 minutes: 14% points
a. Cost of Goods Available for Sale$12,025
b. Value of:Ending InventoryCOGS
(1) LIFO method$3,600$8,425
(2) FIFO method$4,825$7,200
(3) Average-cost method$4,200$7,825
Show calculations in this text entry box:
600*5+900*6+500*7.25=12,025

LIFO: 600*5+100*6=3600 12025-3600=8425

FIFO: 200*6+500*7.25=4825 12025-4825=7200

12025/2000=$6 per unit 6*700=4200 12,025-4,200=7,825
Question 3: Suggested time 15 minutes: 5% points
DateAccountDebitCredit
Nov. 1Notes Receivable $20,000
Cash$20,000
Dec. 11Notes Receivable$11,700
Sales Revenue $11,700
Dec. 16Notes Receivable$12,000
Accounts receivable$12,000
Dec. 31Interest Receivable$497
Interest Revenue$497

Nov.1Cash$22,400
Notes Receivable$20,000
Interest Receivable$400
Interest Revenue$2,000

Answer Sheet Page 4 of 6 .Fa.14Final Exam...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Methods / Techniques of Cost Accounting Essay
  • Branches Of Accounting Essay
  • accounting Essay
  • accounting help Essay
  • Accounting Project Essay
  • Cost Accounting Text review Essay
  • Accounting Essay
  • Accounting Essay

Become a StudyMode Member

Sign Up - It's Free