COMPREHENSIVE PROBLEM rehensive Problem for Chapters 5 a Co Davis Lamp Company (DLC), owned by Jenny Davis, is a wholesale c rchases lamps from the manufacturer and resells them to retail stores. The a wholesale company that purch has three inventory items: desk lamps, table lamps, and floor lamps, DLC a perpetual invento Cerpetual inventory system, FIFO method. DLC owns land with a building usesh is separated into two parts: office space and warcehouse space. All expenses cated with the office are categorized as Administrative Expenses. All expenses associated with the warehouse, which is used for the shipping and receiving functions the company, are categorized as Selling Expenses. In addition to the land and build- DLC also owns office furniture and equipment and warebouse fixtures. The com- associat ing. or uses one accumulated depreciation account for all the depreciable assets. The trial balance for DL.C as of September 30, 2018 follows: DAVIS LAMP COMPANY Trial Balance September 30, 2018 Balance Account Debit Credit Cash $ 457,000 Accounts Receivable Merchandise Inventory Office Supplies 126,000 275 Warehouse Supplies 350 Land 20,000 Building 780,000 Office Furniture and Equipment 125,000 260,000 Warehouse Fixtures $ 194,000 Accumulated Depreciation Accounts Payable 398,925 Davis, Capital Davis, Withdrawals 2,654,150 Sales Revenue 1,061,450 Cost of Goods Sold 270,000 Salaries Expense-Selling 32,000 Utilities Expense-Selling Supplies Expense-Selling Depreciation Expense-Selling 90,000 Salaries Expense-Administrative 25,000 Utilities Expense-Administrative Supplies Expense-Administrative Depreciation Expense-Administrative 3,247,075 $3,247,075 Total salaries, $40,000 (75% selling, 25% administrative). id utilities, $2,670 (60% selling, 40% administrative) amount due to Blue Ridge Lights from Nov. 5 purchase. Dec ved a check from Anderson Office Supply for full amount owed on Nov. 15 sale. vis withdrew $50,000 from the business. 15 Da Sold lamps on account to Atlas Home Furnishings, terms 2/10, n/30: 4,500 desk lamps at $20 each 5,000 table lamps at $45 each 27 Paid salaries, $40,000 (75% selling, 25% administrative). paid utilities, $3,200 (60% selling, 40% administrative). 31 Requirements 1. Open general ledger T-accounts and enter opening balances as of September 30, 2018 tory records for the three inventory items and enter opening balances pen inven 2. as of S transactions: Oct. 1, 12, 15, 28; Nov. 1, 5, 15, 18, and Dec. 27. eptember 30, 2018. Complete the inventory records using the following 3. Record the transactions in the general journal. 4. Post transactions to the general ledger. 5. Prepare adjusting entries for the year ended December 31, 2018, and post to the ledger: a. Depreciation, $48,500 (75% selling, 25% administrative b. Supplies on hand: office, $200; and warehouse, S650 c. A physical inventory account resulted in the following counts: desk lamps, 1,990 table lamps, 5,995, and floor lamps, 6,000. Update the inventory records. 6. Prepare an adjusted trial balance. 7. Provide a summary for the month, in both units and dollars, of the changein inventory for each item in the following format: Desk Lamps Table Lamps Floor Lamps Number Dollar NumberDeilar Narbe oar of lamps Amountof lampsAmountf Beginning Balance Add: Purchases Less: COGS Ending Balance Does the sum of the ending balances in the inventory records match the balance n Merchandise Inventory in the general ledger? If not, review the transactions to find your error. oeneri ecquity for the year ended December 31,2018,and a dasified balane sheet as of December 31, 2018. 8. Prepare Davis Lamp Company's multi-stp income statement and statement of 9. Calculate the following ratios for DLC as of December 31, 2018: gross profir percentage, inventory turnover, and days' sales in inventory 10. Record and post the closing entries. 11. Prepare a post-closing trial balance. COMPREHENSIVE PROBLEM rehensive Problem for Chapters 5 a Co Davis Lamp Company (DLC), owned by Jenny Davis, is a wholesale c rchases lamps from the manufacturer and resells them to retail stores. The a wholesale company that purch has three inventory items: desk lamps, table lamps, and floor lamps, DLC a perpetual invento Cerpetual inventory system, FIFO method. DLC owns land with a building usesh is separated into two parts: office space and warcehouse space. All expenses cated with the office are categorized as Administrative Expenses. All expenses associated with the warehouse, which is used for the shipping and receiving functions the company, are categorized as Selling Expenses. In addition to the land and build- DLC also owns office furniture and equipment and warebouse fixtures. The com- associat ing. or uses one accumulated depreciation account for all the depreciable assets. The trial balance for DL.C as of September 30, 2018 follows: DAVIS LAMP COMPANY Trial Balance September 30, 2018 Balance Account Debit Credit Cash $ 457,000 Accounts Receivable Merchandise Inventory Office Supplies 126,000 275 Warehouse Supplies 350 Land 20,000 Building 780,000 Office Furniture and Equipment 125,000 260,000 Warehouse Fixtures $ 194,000 Accumulated Depreciation Accounts Payable 398,925 Davis, Capital Davis, Withdrawals 2,654,150 Sales Revenue 1,061,450 Cost of Goods Sold 270,000 Salaries Expense-Selling 32,000 Utilities Expense-Selling Supplies Expense-Selling Depreciation Expense-Selling 90,000 Salaries Expense-Administrative 25,000 Utilities Expense-Administrative Supplies Expense-Administrative Depreciation Expense-Administrative 3,247,075 $3,247,075 Total salaries, $40,000 (75% selling, 25% administrative). id utilities, $2,670 (60% selling, 40% administrative) amount due to Blue Ridge Lights from Nov. 5 purchase. Dec ved a check from Anderson Office Supply for full amount owed on Nov. 15 sale. vis withdrew $50,000 from the business. 15 Da Sold lamps on account to Atlas Home Furnishings, terms 2/10, n/30: 4,500 desk lamps at $20 each 5,000 table lamps at $45 each 27 Paid salaries, $40,000 (75% selling, 25% administrative). paid utilities, $3,200 (60% selling, 40% administrative). 31 Requirements 1. Open general ledger T-accounts and enter opening balances as of September 30, 2018 tory records for the three inventory items and enter opening balances pen inven 2. as of S transactions: Oct. 1, 12, 15, 28; Nov. 1, 5, 15, 18, and Dec. 27. eptember 30, 2018. Complete the inventory records using the following 3. Record the transactions in the general journal. 4. Post transactions to the general ledger. 5. Prepare adjusting entries for the year ended December 31, 2018, and post to the ledger: a. Depreciation, $48,500 (75% selling, 25% administrative b. Supplies on hand: office, $200; and warehouse, S650 c. A physical inventory account resulted in the following counts: desk lamps, 1,990 table lamps, 5,995, and floor lamps, 6,000. Update the inventory records. 6. Prepare an adjusted trial balance. 7. Provide a summary for the month, in both units and dollars, of the changein inventory for each item in the following format: Desk Lamps Table Lamps Floor Lamps Number Dollar NumberDeilar Narbe oar of lamps Amountof lampsAmountf Beginning Balance Add: Purchases Less: COGS Ending Balance Does the sum of the ending balances in the inventory records match the balance n Merchandise Inventory in the general ledger? If not, review the transactions to find your error. oeneri ecquity for the year ended December 31,2018,and a dasified balane sheet as of December 31, 2018. 8. Prepare Davis Lamp Company's multi-stp income statement and statement of 9. Calculate the following ratios for DLC as of December 31, 2018: gross profir percentage, inventory turnover, and days' sales in inventory 10. Record and post the closing entries. 11. Prepare a post-closing trial balance