FOR ALL PROBLEMS YOU MUST BE NEAT & ORDERLY, YOUR ANSWERS MUST BE IN GOOD FORM & ANSWERS MUST BE PRESENTED CLEARLY!!!!!! Problem I. Prepare the proper journal entries in good form for the following, assume perpetual system (6 points per journal entry, total of 48 points): 12/1/16 Sale on account to Joe $500,000, terms 4/15 n/30, cost of goods sold at $175,000. 12/2/16 Purchased merchandise on account from Smith Company for $300,000, terms 3/10 n/30. 12/6/16 $4,000 of the merchandise purchased from Smith Co. was broken, the merchandise was not returned to Smith Co. 12/8/16 Paid Smith Company the amount due. 12/29/16 Received the amount due from Joe, Joe paid late & did not earn the 4% discount. Adjusting journal entries are done only at year-end: 12/31/16A. The Supplies account had an opening debit balance of $1,500, in addition we had supplies purchases of $1,200 and supplies returns of $100; when we took an inventory of supplies on 12/31/16 we counted only $300 of supplies remained. 12/31/16B. The Prepaid Rent account has a debit balance of $10,000, from a review of the rental agreement it was determined that this $10,000 was for the five-mo period Nov.1 2016 to March 31, 2017 12/31/16C. The Unearned Service Revenue account currently has a $120,000 credit balance that was for a service we are to complete over a ten-month period starting on Sept. 1, 2016. Problem II. Prepare a Bank Reconciliation in good form from the following: (17 points) May 31, 2020 Cash balance from the depositor's records $3,500 May 31, 2020 Cash balance from the bank statement S5,310 Outstanding checks $2,000 Deposit in transit $200 A $600 deposit you made was in error lost by the bank and was not credited to your bank account properly Error made by you when you wrote a check for $240 which was returned by the bank to you as a NSF (non-sufficient funds) check. Bank also charged you a $20 fee. supplies on 12/31/16 we counted only $300 of supplies remained. 12/31/16B.The Prepaid Rent account has a debit balance of $10,000, from a review of the rental agreement it was determined that this $10,000 was for the five-mo. period Nov.1 2016 to March 31, 2017 12/31/16C. The Unearned Service Revenue account currently has a $120,000 credit balance that was for a service we are to complete over a ten-month period starting on Sept. 1, 2016. Problem II. Prepare a Bank Reconciliation in good form from the following: (17 points) May 31, 2020 Cash balance from the depositor's records $3,500 May 31, 2020 Cash balance from the bank statement $5,310 Outstanding checks $2,000 Deposit in transit $200 A $600 deposit you made was in error lost by the bank and was not credited to your bank account properly Error made by you when you wrote a check for $240 which was returned by the bank to you as a NSF (non-sufficient funds) check. Bank also charged you a $20 fee. A customer check deposited by you was returned by the bank as a NSF $450. Interest Income eamed on the checking account $30. Error by you on a $140 check payment that you in error recorded in the journals as $410. Bank error: a customer check deposited by you for $172 was recorded in error as $712. Problem III. Prepare ONLY the FIRST TWO closing journal entries in good form from the below information (10 points each journal entry-20 points in total) ABC Company Adjusted Trial Balance Dec. 31, 2010: Account Name Debit Credit Cash $10,000 Sales Revenue $38,000 Utilities Expense 12,000 Merchandise Inventory 35.000 Accounts Receivable 30,000 Forfeited Sales Discount 5,000 Salaries Payable 3,000 Gain on Sale of Truck 4,500 Rent Expense 16,000 Uneared Service Revenue 20,000 Withdrawals 9,000 Building 80.000 Service Revenue 16,000 Depreciation Expense 8,000 Accumulated Depreciation-Building 21.000 Accounts Payable 4,500 Interest Income 2.600 Cost of Goods Sold 14.600 Capital @ 12/31/2010 = 101.500 80,000 16,000 8,000 Building Service Revenue Depreciation Expense Accumulated Depreciation-Building Accounts Payable Interest Income Cost of Goods Sold Capital @ 12/31/2010 = 21,000 4,500 2,600 14,600 101,500 Problem IV. Using Average Method calculate the Cost of Goods Sold (15 pts.): 1/1/98 beginning inventory 3,000 units cost $15 each 1/14/98 purchased 1,000 units cost $18 each 1/18/98 purchased 1,500 units cost $21 each 1/25/98 purchased 2,000 units cost $23 each at 1/31/98 we have 2,600 unit remaining in inventory (if needed round to the cents, do not round to the dollar!!)