Part 1 Following is the year-end adjusted trial balance for Printing Plus company for the year end: PRINTING PLUS Adjusted Trial Balance January 31, 2019 Account Debite Credit Cash $24,800 Accounts Receivable 1,200 Interest Receivable 140 Supplies 400 Equipment 3,500 Accumulated Depreciation: Equipment Accounts Payable 500 Salaries Payable 1,500 Unearned Revenue 3,400 Common Stock 20,000 Dividends Interest Revenue 140 Service Revenue 10,100 Supplies Expense 100 Depreciation Expense: Equipment Salaries Expense 5.100 Utility Expense 300 Total $35,715 $35,715 75 75 Requirement: Prepare the closing entries at January 31" for the current year. (5 marks) Part 2 Isag stationary store entered into the transactions listed below. In the journal provided March 1 Purchased $2000 of merchandise on credit, terms 4/20, 1/60 Returned $300 of the items purchased on March 1 8 Paid freight charges of $110 cash on the items purchased March 1 Sold merchandise on credit for $6000, terms 3/10, 1/30. The merchandise had an inventory cost of $ 1500. Of the merchandise sold on March 20, 52000 of it was returned. The items had cost the store $500. 28 Received payment in full from the customer of March 2014 31 Paid for the merchandise purchased on March 1" Requirement Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system (5 marks) Part 3 Zoom company uses Perpetual Inventory System. During the month of August, Zoom purchased and sold merchandise on account as follows: August 1 6 15 Beginning inventory Purchase Purchase Sale 35units @ $10 each 30 units @ $20 each 40 units @ $60each 60 units @ $ 25 each 85 units @ $40 each 20 30 Purchase Sale Requirement Using perpetual inventory record for Panda calculate Cost of goods sold using LIFO inventory costing method? (5 marks) Part 4 On September 30, Riyadh Real Estate Company acquired a land by paying $150,000 in cash. An old warehouse on the property was demolished at a cost of $10,000, the scrap materials were sold for $5,000. Additional expenditures before construction began included $2,500 attorney's fee for work concerning the land purchases, 59000 real estate broker's foe (2 marks) Part 5 Elite Company purchased a machine on June 1, 2017. The cost of the machine is SR 30,000. The company estimated that the machine will have a scrap value of SR2700. It has a useful life of 3 years Requirement: Compute Book Value using the Straight-Line method for all machine's useful life
