Course Code: Week # Week NameSubmission Requirements:

Submit the completed journal entries template and the detailed calculations to your instructor for evaluation. Evaluation Criteria: The assessment will be evaluated using the following points:

• ? Did you correctly record the journal entries for the given transactions in the given template?
• ? Did you correctly include the given adjustment data?
• ? Did you correctly complete the end-of-year adjusting and closing entries?
• ? Did you include detailed steps to support your response?

Journal ACCOUNTS AND EXPLANATIONS DATE POST. REF. Dec 1 DEBIT CREDIT AC2799: Module 5 Operating Expenses Exercise 5.1 Year-End Journal Entries Using the business scenario and the adjustment data given below, complete the end-of-year adjusting and closing entries using the journal entry template. Ensure that you include detailed calculations that helped you to arrive at the solution. Land: 25 acres valued at $56,000, inherited, currently in Year Two. Warehouse: Built in 2012started to use on 1/6/2012, basis $39,000, residual value $10,000, 30year life uses straight-line depreciationcurrently in year three. Machinery: Straight line cost $22,000, $6,000 residual value, five-year lifepurchased 10/1/2012, currently in year three. 2010 Truck: Cost $20,000, no residual value, four years, purchased and started using on 1/1/2014, currently in year two. Cost of Goods Sold: 1. Blood Pressure Monitors: 2014 Annual sales of 250 units. Ending Inventory is 60 units. Units Unit Cost Total Cost Beginning Inventory 257 350 $89,950 Purchase 1 85 345 $29,325 Purchase 2 300 330 $99,000 2. Ultrasound Scanners: 2014 Annual sales of 1,650 units. Ending Inventory is 1,350. Units Unit Cost Total Cost Beginning Inventory 654 400 $261,600 Purchase 1 250 435 $108,750 Purchase 2 1000 400 $40,000 1 AC2799: Module 5 Operating Expenses Exercise 5.1 Year-End Journal Entries Adjustments needed: Depreciation: Machinery Depreciation: Truck Prepaid Insurance Unearned income 40% completed Wage expense due: $4,500 Cash reserve Office supplies remaining: $245 Calculate sales tax payable: Due 1/28 Interest payable COGSBlood Pressure Monitors COGSUltrasound Scanners Submission Requirements: Submit the completed journal entries template and the detailed calculations to your instructor for evaluation. Evaluation Criteria: The assessment will be evaluated using the following points: Did you correctly record the journal entries for the given transactions in the given template? Did you correctly include the given adjustment data? Did you correctly complete the end-of-year adjusting and closing entries? Did you include detailed steps to support your response? 2 Journal ACCOUNTS AND EXPLANATIONS DATE POST. DEBIT CREDIT REF. Dec 1 Land Owners equity Depreciation Machinery $56,000 $56,000 3,200 Accumulated Depreciation 3,200 Depreciation truck Accumulated Depreciation 5,000 Wages expense Wages payable 4,500 Office supplies Office supplies expense 245 Cost of goods soldBlood pressure monitors Purchases Inventory Cost of goods soldUntrasound Scanners Purchases Inventory 5,000 4,500 245 198,475 128,325 70,150 221,600 148,750 72,850 Calculations 1. Depreciation Machinery Cash (2011/2012) Residual value Depreciation-5 years 22,000 6,000 16,000 = 16000 5 = 3,200 Accumulated depreciation Year 1 Year 2 Year 3 3,200 6,400 9,600 2. Depreciation truck Cost (1.1.12014) Residual Value Depreciation 20,000 0 20,000 20,000 4 = 5,000 3. Prepaid Insurance No figures are given but the entries are that debit prepaid insurance and credit cash 4. Unearned income 40% completed there is no data but the entries are as follows: Debit unearned income and credit service income 5. Wages expense due $4,500 Wages expense 4,500 Wages payable 4,500 6. Cash reserve No data is available 7. Office Supplies remaining $ 245 Debit: Office Supplies Credit: Office suppliers 8. Sales Tax payable No data 9. Interest payable No data 10. COGS - Blood Pressure Monitors Beginning Inventory 89,950 Purchases 1 29,325 Purchases 2 99,000 Less ending inventory 60 x 330 = 19,800 Cost of goods sold 198,475 LIFO method has been used to value ending inventory 11. Cost of goods sold - Ultrasound Scanners Beginning Inventory 218,275 261,600 Purchases 1 108,750 Purchases 2 40,000 410,350 Less ending inventory 188,750 Cost of goods sold 221,600 Ending inventory is arrived as follows using LIFO method 1000 x 400 = 400 x 100 = 40,000 250 x 435 = 108,750 = 108,750 100 x 400 = 40,000 = 40,000 Total 188,750 Purchase 2 has been to adjusted to the correct amount of (400 x 1000) = 400,000