Beginning balances of UPM Company's accounts as of January 1, 2016 as given below: Beg Balance Account Title Debit Credit Cash 142300 Accounts Receivable 48500 Supplies 18000 Prepaid Insurance 0 Inventory 6000 Equipment 30000 Accumulated Depreciation- 16000 Equipment Accounts Payable 35000 Salary Payable 27,000 Unearned Sales Revenue 15000 Capital 151800 Withdrawals 0 Sales Revenue Sales Returns& Allowances Sales Discounts Cost of Goods Sold Insurance Expense Depreciation Expense- Equipment Supplies Expense Salary Expense Total 244800 244800 During January 2016, UPM Company completed the following transactions: Jan 2: Purchased 300 units of inventory for 13,500$ from Happy Company, on terms, 3/20, n/60. Jan 4: Purchased 150 units of inventory from Maids Company on account with terms 275, n/30. Total invoice includes $6,800 plus $250 freight charges. Jan 5: Paid total salary of the December 2015, 27,000$. Jan 10: Paid to Maids Company. Jan 11: Prepaid one-year insurance, $3,600. Jan 12: Sold 500 units of goods to Shine Company for $50,000 ($100 each) on account with terms 5/10,n/30. Jan 14: Received 50 units of goods back from Shine Company (Returned goods are from $47 of cost each). o Jan 15: Received payment from Shine Company, settling the amount due in full. olan 20: Sold 70 units on account, $7,000 Jan 20: Sold 70 units on account, $7,000 ($100 each) for cash to Bridget Company, n/30 Jan 26: Owner withdrew cash of 5,000$ o Jan 27: Purchased supplies for cash of $3,000. On January 31, 2016 UPM completed following adjusting entries: Expiration of prepaid insurance for one month Depreciation of equipment for the month, $2,500 Supplies on hand, $6,000 Unearned sales revenue earned is, $12,000. Accrued salary of the January 2016 is 27,000$ which will be paid on the 5th of the next month. Requirements: 1. Journalize and post the January transactions. (Open T-accounts for each of the accounts given in trial balance, do not forget to write beginning balances) (2 month Depreciation of equipment for the month, $2,500 Supplies on hand, $6,000 Unearned sales revenue earned is, $12,000. Accrued salary of the January 2016 is 27,000$ which will be paid on the 5th of the next month. Requirements: 1. Journalize and post the January transactions. (Open T-accounts for each of the accounts given in trial balance, do not forget to write beginning balances) (2 points each) 2. Prepare FIFO schedule to calculate the Cost of Goods Sold (COGS) on the Jan 12th, and 20th. (Beginning inventory as of January 1 include 150 units $40 each which totals $6,000 as given) (17points) 3. Prepare unadjusted trial balance as of January 31, 2016. (10 points) 4. Journalize and post the adjusting entries. (3 points each) 5. Prepare adjusted trial balance as of January 31, 2016. (10 points) Beginning balances of UPM Company's accounts as of January 1, 2016 as given below: Beg Balance Account Title Debit Credit Cash 142300 Accounts Receivable 48500 Supplies 18000 Prepaid Insurance 0 Inventory 6000 Equipment 30000 Accumulated Depreciation- 16000 Equipment Accounts Payable 35000 Salary Payable 27,000 Unearned Sales Revenue 15000 Capital 151800 Withdrawals 0 Sales Revenue Sales Returns& Allowances Sales Discounts Cost of Goods Sold Insurance Expense Depreciation Expense- Equipment Supplies Expense Salary Expense Total 244800 244800 During January 2016, UPM Company completed the following transactions: Jan 2: Purchased 300 units of inventory for 13,500$ from Happy Company, on terms, 3/20, n/60. Jan 4: Purchased 150 units of inventory from Maids Company on account with terms 275, n/30. Total invoice includes $6,800 plus $250 freight charges. Jan 5: Paid total salary of the December 2015, 27,000$. Jan 10: Paid to Maids Company. Jan 11: Prepaid one-year insurance, $3,600. Jan 12: Sold 500 units of goods to Shine Company for $50,000 ($100 each) on account with terms 5/10,n/30. Jan 14: Received 50 units of goods back from Shine Company (Returned goods are from $47 of cost each). o Jan 15: Received payment from Shine Company, settling the amount due in full. olan 20: Sold 70 units on account, $7,000 Jan 20: Sold 70 units on account, $7,000 ($100 each) for cash to Bridget Company, n/30 Jan 26: Owner withdrew cash of 5,000$ o Jan 27: Purchased supplies for cash of $3,000. On January 31, 2016 UPM completed following adjusting entries: Expiration of prepaid insurance for one month Depreciation of equipment for the month, $2,500 Supplies on hand, $6,000 Unearned sales revenue earned is, $12,000. Accrued salary of the January 2016 is 27,000$ which will be paid on the 5th of the next month. Requirements: 1. Journalize and post the January transactions. (Open T-accounts for each of the accounts given in trial balance, do not forget to write beginning balances) (2 month Depreciation of equipment for the month, $2,500 Supplies on hand, $6,000 Unearned sales revenue earned is, $12,000. Accrued salary of the January 2016 is 27,000$ which will be paid on the 5th of the next month. Requirements: 1. Journalize and post the January transactions. (Open T-accounts for each of the accounts given in trial balance, do not forget to write beginning balances) (2 points each) 2. Prepare FIFO schedule to calculate the Cost of Goods Sold (COGS) on the Jan 12th, and 20th. (Beginning inventory as of January 1 include 150 units $40 each which totals $6,000 as given) (17points) 3. Prepare unadjusted trial balance as of January 31, 2016. (10 points) 4. Journalize and post the adjusting entries. (3 points each) 5. Prepare adjusted trial balance as of January 31, 2016. (10 points)
