Hello, I cannot figure out what i am doing wrong. And how to complete the Merch Inv box. How do i get the cost/unit correct.
Part 1 [140 points] It is November 1. 2015. the rst business day 01' the month. and you have just been hired as the accountant for Southgate Inc.. which operates with monthly accounting periods. For simplicity. ignore all sales tax considerations and assume that Southgate Inc. sells one product. All of the company's accounting work has been completed through the end at October, 2015. Southgate |nc.'s year end is November 30. The post-closing alphabetized trial balance at October 31, 201 5 follows. tSee the Accounts Receivable Subledger below for details regarding customer balances. QSee the Accounts Payable Subledger below for details regarding creditor balances. 3There are an unlimited number ofshares authorized with Debit Credit - 1 AMI-"113 FBOBNEDIB . 2321300 10.000 shares issued and outstanding as at amber 31! 2015 Accounts payable 2. 701.500 4This is a 5% note due October 15. 2018 with interest Accumulated depreciation, store equipment ..... 39.415 collectible on the 15th of each month. Refer to the collection Allowance fordoubt'lul accounts 15.755 schedule below for the note details. Values in schedule have Cash. been rounded for convenience. Common shares 38.500 ISSee the Merchandise Inventory Subledger below for details of Inventory holdings. 6T he balance in Prepaid Advertising represents payment for 4 months starting November 1. 2015. Notes receivable '__ ee the Property. Plant and Equipment Subledger below for Prepaid advertising 6 detailed information. Retained earnings 2.312.127 Store equipment 7___ _ 113.7uo Utilities payable. .. . 32-00\" 3,139,299 3,139,299 You have determined that Southgate Inc. uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2'10. N30. Merchandise sells for $217 per unit. The following source documents are from November : a a c: c: a a a a C] C] i Inter-Ofce Memo 18 i C] i Inter-Ofce Memo 22 i C] i Inter-Ofce Memo 24 i C] | imer-ofu Memo H | C] i Deposit slip (November 15) i C] i lmer-Dfm Merlin?! i C] i imu-ofu Mum) 25 i C] I Deposit slip (November 8) i C] i Inter-Ofce Memo 19 i C] i Invoice 1880 i C] a a a _ For all parts of the Case Study. round all calculations to two decimal places unless othenivise specied. \fMerchandise Inventory Subledger (Amt. #119) (Note: Re-lculate the Balance in Inventory's Angostl'Unit aer each tlaneaclim.). 'All mallunit Illculalians should be rounded to him decimal glam. Purchasesl'l'reneporlaan-lrd Cast aquods Said! (Purdnse RatlmefDisnounlB) (Relums lo Invenhry) Balanue in lrwerrbry Units CosUniE' Tabll $ Units Cast'UniE' Tabll $ Units AVgCOG'HUnit' Total $ 17.1110 ED 1.360.000 17.1130 80 1.350.000 Camber 15. 2015. Nevember15, 2015 1,034 390 144 Demmber15, 2015 394 140 January 15. 201B, 398 135 February 15. 2016 133 Marnh'15.2018_ 905 129 April 15. 2013 909 125 Mail 15. 2013 June '15, 2016 July 15, 2016 ............ August 15, 2015 ........ 56phmber 15. 2013 Dubber 15, 20167 November 15, 201B .353 % % Property, Plant and Equipment Subledger Cost Information August 15, 2010 ________ 1,034 1,021 September 15, 2018 1,034 1,025 October 15, 201 8, 1,034 1,030 34,500 2,724 37,224 Desc. Purd'l. Date Depr. Method Residual Life Aeoum. Depr. Bal.. October 31 , 2015 Depr. Exp, November, 2015 Aocum. Depr. Bal.. November 30, 2015 Store Equipment Dec9, 2013 Double-Declining 15,013] 10 39,416 Otoe Fumilure Notes- 1. Calmieled tn the numet whole month for partial perioch. Nov 9, 2015 ? 2. For DoubleDediningBelanoe, dapren'alion is ablated for the eial year and then divided by the numberof months the asset was used in that fatal year to getthe depren'alion per month. Round nal values so the neared whole dollar. c) What is the next step in the accounting cycle? 0 Prepare an adjusted trial balance 0 Prepare closing entries 0 Prepare a post-closing trial balanoe 0 Post closing entries 0 Post adjusting entries 0 Prepare bank reconciliation and adjusting entries 9 Post transactions O This the last step 0 Prepare nancial statements ? 2,055 1,030
