On December 31, 3017, Harrison Company had the following balance sheet:

Harrison Company

Balance Sheet

At December 31, 2017

Cash $4,800

Accounts Receivable $3,900

Inventory - Note 1 $1,800

Equipment - Note 2 $25,000

Accumulated Depreciation -$5,000

TOTAL ASSESTS: $30,500

Accounts Payable $3,000

Common Stock Par Value $1, $8,000

Authorized 100,000 shares,

outstanding 8,000 shares

Additional Paid in Equity $2,000

Total Pd in Equity $10,000

Retained Earning $17,500

Total Liabilities & $30,500

StockHolder Equity

Notes to the Financial Statement:

Note 1: Inventory - Harrison Company uses the FIFO method of inventory. The inventory

of $1,800 consisted of 3,000 units at a cost of $.60 per unit.

Note 2: As noted above, total Common Stock, $1.00 par authorized in the Corporate Charter are 100,000 shares.

As of 12/31/17 8,000 shares are outstanding

During the first six months of 2018, Harrison Company had the following transactions:

1)On January 5, purchased 4,000 units of inventory at a cost of $.72 per unit on account.

2)On February 8, sold 4,400 units of inventory at $.90 per unit on account.

3)On April 12, purchased 2,200 units of inventory at a cost of $.75 per unit on account.

4)On June 14, sold 2,000 units of inventory at $.95 per unit

1)Determine the total sales for Harrison Company for the period ending June 30, 2018

in both units and dollars.

SALES: ________________

Total Units: ________________

Total $: ________________

2)Complete the following inventory schedule to determine goods available for sale,

both in units & dollars

Date Units Unit Cost Extension $

Beginning Inventory $0.60

Purchases

Goods Avail

For sale

3)Determine the Cost of Goods Sold Schedule based on the FIFO method of inventory,

to the nearest $ is acceptable.

FIFO

Units Unit Cost Extension $

opening balance

cost of Goods

sold

4)Determine the Gross Profit ____________

5.) WHAT IS THE INVENTORY VALUE AT JUNE 30, 2018

6.) In January 2018, Harrison Company issued 5,000 shares of its Common Stock, par value $1 for $3 per share.

Complete the change in Equity for this transaction

Common Stock Par Value $1, ____________

Additional Paid in Equity ____________

7) Below is the aged AR for Harris Conmpany at 12/31/18. It determined that some of the accounts included in the aging

will not be paid. It % of uncollectibles is based on past experience. DETERMINE the Allowance for Bad Debt at

12/31/2018

Total 0-30 31-60 61-90 91-120 over 120

AR $305,000 $107,000 $60,000 $50,000 $38,000 $50,000

% of Uncollectibles 2% 5% 7.5% 10% 25%

Estimated Bad Debt

The Bad Debt would be: ____________

8) On December 31, 2018 Harris Company authorized a DIVIDEND of $.25, to Stockholders of record January 15, 2019

Payable January 31, 2019

Determine the Common Share Dividend ____________

9) What is the Dividend Payable Liability at 12/31/2018 ____________