1. Solve the following

During the year your company issued 500 shares of common stock at $25 per share.Total revenue for the year was $380,000 and total expenses were $395,000. On January 1, 2020 total assets were $80,000 and total liabilities were $65,500.

Dividends of $20,000 were paid if there was net income.

How much was the ending equity balance? ________________________

Questions 2-10 Inventory Analysis are using the LIFO method.

The Eagle trading company discloses the following information for the month of May

2020.

May 01: Beginning inventory 800 units @ $11 each.

May 07: Purchased 1,000 units @ $10 each.

May 10: Sold 1,500 units @ $15 each.

May 15: Purchased 1,000 units @ $10 each.

May 20: Customer returned 500 units from April sale (returns are in inventory)

May 24: Sold 1,200 @ $15 each.

May 27: Sold 300 units @ $15.50 each.

2. Calculate total revenue:

_______________ Units @ __________ ______________

_______________ Units @ __________ ______________

_______________ Units @ __________ ______________

_______________ Units @ __________ ______________

______________

Cost of ending inventory

DATE PURCHASES SALES BALANCE

May 1

Beginning Balance

May 7

3. Subtotal

May 10

4. Subtotal

May 15

5. Subtotal

May 20

6. Subtotal

May 24

7. Subtotal

May 27

Subtotal 8. Total

9. What are the COGS? ___________________________

10. What is the GP? ___________________________

Depletion: A mining company purchased a coalmine on Jan 1 2018 with an estimate capacity of 1,250,000 tons for $5,000,000. The preparation costs totaled $65,000 and the estimated salvage value is zero. They had extracted 120,000 tons of coal from the mine up to March 31, 2019 and sold all but 20,000 tons of the coal

extracted from the mine, within the month.

11. What is the cost per ton? _______________________________________

12. Write the journal entry to record the depletion.

Straight-Line Depreciation: A company purchases equipment with a useful life of 4 years for $50,000 on July 1, 2019. The equipment will have a salvage value of $6,000.

Assuming that the company's accounting year ends on December 31 of each year, what will be the Depreciation Expense for the years 2019 and 2020 assuming straight-line

depreciation?

13. Year 2019: $_________________ 14. Year 2020: $___________________

Double Declining Balance Depreciation

An asset costing $30,000 has estimated useful life of 5 years and salvage value of $6,000.

Calculate the depreciation for the following years using DDB method:

15. What is the year 1 depreciation expense?

16. What is the depreciation expense for year 2?

17. What is the depreciation expense for year 3?