1 Solve for the missing amounts in the T account given below Assume that there is only one debit entry and one credit entry in the account during the month Required a The Supplies account had a balance of $1,650 at the beginning of the month and $2,500 at the end of the month The cost of supplies purchased during the month was $4,800 Calculate the cost of supplies used during the month Supplies Beginning balance 1,650 Supplies purchased 4,800 Supplies used 4,150 Ending balance 2,500 b Wages Payable had a balance of $6,700 at the end of the month During the month, $37,000 of wages were paid to employees Wages expense accrued during the month totaled $38,500 Calculate Wages Payable at the beginning of the month Wages Payable Beginning balance Wages paid Wages accrued Ending balance Calco Inc rents its store location Rent is $900 per month, payable quarterly in advance On July 1, a check for $2,700 was issued to the landlord for the July September quarter Required Prepare the Horizontal model and Journal entry for each of the following transactions To record the payment on July 1, assuming that all $2,700 is initially recorded as Rent Expense To record the adjustment that would be appropriate at July 31 if your entry in a had been made To record the payment on July 1, assuming instead that all $2,700 is initially recorded as Prepaid Rent To record the adjustment that would be appropriate at July 31 if your entry in c had been made To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made) 1 a Prepare the Horizontal model for each of the following transactions a To record the payment on July 1, assuming that all $2,700 is initially recorded as Rent Expense b To record the adjustment that would be appropriate at July 31 if your entry in a had been made c To record the payment on July 1, assuming instead that all $2,700 is initially recorded as Prepaid Rent d To record the adjustment that would be appropriate at July 31 if your entry in c had been made e To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made) Indicate the financial statement effect (Enter decreases with a minus sign to indicate a negative financial statement effect ) Show less Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net income Revenues Expenses a b c d e Indicate the financial statement effect If you were supervising the bookkeeper, how would you suggest that the July 1 payment be recorded Selected information taken from the financial statements of Verbeke Co for the year ended December 31, 2019, follows Gross profit $413,000 General and administrative expenses 81,000 Net cash used by investing activities 104,000 Dividends paid 55,000 Interest expense 60,000 Net sales 745,000 Advertising expense 74,000 Accounts payable 100,000 Income tax expense 81,000 Other selling expenses 43,000 Required a Calculate income from operations (operating income) for the year ended December 31, 2019 Income from operations b Calculate net income for the year ended December 31, 2019 Net income CHAPTER 5 The beginning inventory was 350 units at a cost of $11 per unit Goods available for sale during the year were 1,450 units at a total cost of $17,500 In May, 650 units were purchased at a total cost of $7,800 The only other purchase transaction occurred during October Ending inventory was 625 units Required a Calculate the number of units purchased in October and the cost per unit purchased in October Purchased in October Number of units Cost per unit b 1 Assume the periodic inventory system is used Calculate cost of goods sold and ending inventory usingFIFO method (Enter all values as a positive value ) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance of units Cost per unit Cost of Goods Available for Sale of units sold Cost per unit Cost of Goods Sold of units in ending inventory Cost per unit Ending Inventory Beg Inventory Purchases May October Total b 2 Assume the periodic inventory system is used Calculate cost of goods sold and ending inventory usingLIFO method (Enter all values as a positive value ) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance of units Cost per unit Cost of Goods Available for Sale of units sold Cost per unit Cost of Goods Sold of units in ending inventory Cost per unit Ending Inventory Beg Inventory Purchases May October Total Sales during the year were 1,060 units Beginning inventory was 340 units at a cost of $4 per unit Purchase 1 was 530 units at $5 per unit Purchase 2 was 820 units at $6 per unit Required a Assume the periodic inventory system is used Calculate cost of goods sold and ending inventory usingFIFO method (Enter all values as a positive value ) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance of units Cost per unit Cost of Goods Available for Sale of units sold Cost per unit Cost of Goods Sold of units in ending inventory Cost per unit Ending Inventory Beg Inventory Purchases Purchase 1 Purchase 2 Total Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance of units Cost per unit Cost of Goods Available for Sale of units sold Cost per unit Cost of Goods Sold of units in ending inventory Cost per unit Ending Inventory Beg Inventory Purchases Purchase 1 Purchase 2 Total b Assume the periodic inventory system is used Calculate cost of goods sold and ending inventory usingLIFO method (Enter all values as a positive value )

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1.Solve for the missing amounts in the T-account given below. Assume that there is only one debit entry and one credit entry in the account

1.Solve for the missing amounts in the T-account given below. Assume that there is only one debit entry and one credit entry in the account during the month.

Required:

a.The Supplies account had a balance of $1,650 at the beginning of the month and $2,500 at the end of the month. The cost of supplies purchased during the month was $4,800. Calculate the cost of supplies used during the month.

Supplies
Beginning balance	1,650
Supplies purchased	4,800	Supplies used	4,150
Ending balance	2,500

b.Wages Payable had a balance of $6,700 at the end of the month. During the month, $37,000 of wages were paid to employees. Wages expense accrued during the month totaled $38,500. Calculate Wages Payable at the beginning of the month.

Wages Payable
		Beginning balance
Wages paid		Wages accrued
		Ending balance

Calco Inc. rents its store location. Rent is $900 per month, payable quarterly in advance. On July 1, a check for $2,700 was issued to the landlord for the July-September quarter. Required:

Prepare the Horizontal model and Journal entry for each of the following transactions.
1. To record the payment on July 1, assuming that all $2,700 is initially recorded as Rent Expense.
2. To record the adjustment that would be appropriate at July 31 if your entry inahad been made.
3. To record the payment on July 1, assuming instead that all $2,700 is initially recorded as Prepaid Rent.
4. To record the adjustment that would be appropriate at July 31 if your entry inchad been made.
5. To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made).

1-a.Prepare the Horizontal model for each of the following transactions. a.To record the payment on July 1, assuming that all $2,700 is initially recorded as Rent Expense. b.To record the adjustment that would be appropriate at July 31 if your entry inahad been made. c.To record the payment on July 1, assuming instead that all $2,700 is initially recorded as Prepaid Rent. d.To record the adjustment that would be appropriate at July 31 if your entry inchad been made. e.To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made). Indicate the financial statement effect.(Enter decreases with a minus sign to indicate a negative financial statement effect.)

Show less

	Balance Sheet		Income Statement
	Assets	=	Liabilities	+	Stockholders' Equity	Net income	=	Revenues	-	Expenses
a.
b.
c.

d.
e.

Indicate the financial statement effect.

If you were supervising the bookkeeper, how would you suggest that the July 1 payment be recorded?

Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2019, follows:


Gross profit	$413,000
General and administrative expenses	81,000
Net cash used by investing activities	104,000
Dividends paid	55,000
Interest expense	60,000
Net sales	745,000
Advertising expense	74,000
Accounts payable	100,000
Income tax expense	81,000
Other selling expenses	43,000

Required: a.Calculate income from operations (operating income) for the year ended December 31, 2019.

Income from operations

b.Calculate net income for the year ended December 31, 2019.

Net income

CHAPTER 5

The beginning inventory was 350 units at a cost of $11 per unit. Goods available for sale during the year were 1,450 units at a total cost of $17,500. In May, 650 units were purchased at a total cost of $7,800. The only other purchase transaction occurred during October. Ending inventory was 625 units.

Required:

a.Calculate the number of units purchased in October and the cost per unit purchased in October.

Purchased in October
Number of units
Cost per unit

b-1.Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory usingFIFO method.(Enter all values as a positive value.)

Periodic FIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory
Purchases:
May
October
Total

b-2.Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory usingLIFO method.(Enter all values as a positive value.)

Periodic LIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory
Purchases:
May
October
Total

Sales during the year were 1,060 units. Beginning inventory was 340 units at a cost of $4 per unit. Purchase 1 was 530 units at $5 per unit. Purchase 2 was 820 units at $6 per unit.

Required:

a.Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory usingFIFO method.(Enter all values as a positive

value.)

Periodic FIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory
Purchases:
Purchase 1
Purchase 2
Total

Periodic LIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory
Purchases:
Purchase 1
Purchase 2
Total

b.Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory usingLIFO method.(Enter all values as a positive value.)