Please record the adjustments in the first two preformatted worksheets to the appropriate columns. If the numbers do not add up please still add them in. You may have to click on the photos to see the whole document.

1 Purchased inventories of $460,000, on account, terms 2/15, n45.

2 Had sales of merchandise of $1,478,000, cost of sales were $640,000. Terms of the sale were 3/10, n30.

3 Paid the purchases made in #1, 11 days after purchase.

4 Merchandise was returned to Bed Bath & Beyond. It was sold for $93,000 and its cost was $62,000. The items were returned to merchandise and cash was refunded.

5 Purchased various insurance policies, October 1, 2017, $58,800, paying cash. These policies covered Bed Bath & Beyond for 12 months from date of purchase. (Topic 2)

6 Bed Bath & Beyond was paid for the merchandise sold in #2, 8 days after sale.

7 Gift certificates for Bed Bath & Beyond merchandise were sold to customers, sales prices $48,000, cash. (Topic 2)

8 Buildings were purchased, $8,520. $520 cash was paid and a long-term note was issued for the remainder.

9 Bed Bath & Beyond returned inventories that were defective. The cost was $178,000, payment had not been made so accounts payable was reduced.

10 Paid wages, $493,000.

11 Other comprehensive loss in the statement of retained earnings needed to be adjusted. This was increased to $720 and assume the other account in this transaction is Accumulated other comprehensive loss in the shareholders' equity section of the balance sheet.

12 It is March 3, 2018. Record the insurance expired from #5. (Topic 2)

13 An analysis of accounts receivable indicates that 5% is estimated to be uncollectible. Assume the approach used by this company is to multiply accounts receivable by the percentage, with that amount being bad debt expense.

14 Assume Bed Bath & Beyond uses the first-in, first-out (FIFO) cost flow assumption for valuing inventories. The beginning inventory and a sample of purchases were used to value inventories. These amounts were: beginning inventory (3/15/17) 58,042 units @ $47.05 each; purchase 3/19/17, 6,000 units @ $48 each; purchase 5/6/17, 11,500 units @ $49 each; purchase 6/9/17, 8,000 units @ $52 each; purchase 8/21/17, 11,000 units @ $54 each; purchase 9/12/17, 6,000 units @ $55 each; purchase 1/5/18, 19,000 units @ $57 each. Forty three thousand (43,000) units were on hand at March 3, 2018. Value the ending inventory (not cost of goods sold) and adjust the total to the ending inventory value accordingly. (transactions concluded on next page)

15 Declared and paid a $36,000 cash dividend on common stock.

16 After the adjustment of inventories was made in #14, a comparison to market value (lower of cost or market)was made. "Market" value is $2,250,000

17 Assume the end of the fiscal year, January 31, 2015, falls mid-week, on a Wednesday. The year-end adjustment for accrued wages is made. Accrued wages is $155,000. (Topic 2)

18 The corporate tax returns were filed and provision for income taxes is increased $6,000. A liability is also recorded.

19 Depreciation is recorded on Property and Equipment, $83,000. Accumulated depreciation is netted withProperty and equipment on the balance sheet, so decrease net property and equipment. (Topic 2)

20 "Prepaid expenses and other current assets" includes supplies which have an unadjusted balance of $160,000. A physical count of supplies reveals that the actual balance at year end is $170,000. Accounts are adjusted accordingly. (Topic 2)

Bed Bath & Beyond INC. and Subsidiaries Statement of Earnings Year ended March 3, 2018 $ in thousands 1 2 3 4 6 7 8 10 11 12 13 14 15 16 17 18 19 20 Updated Net sales $12,349,301 :...... ...... ..... 12,349,301 Cost of sales 7,906,286 7,906,286 Gross Profit 4,443,015 4,443,015 Selling, general and administrative expenses 3,681,694 3,681,694 Operating profit 761,321 761,321 Interest expense, net 65,661 Earnings Before Income Tax Provision 695,660 Provisions for income taxes 270,802 .......&... 65,661 695,660 270,802 Net Earnings $ 424,858 424,858 Net earnings per share - Basic 3.05 3 Net earnings per share - Diluted 3 3 Weighted average shares outstanding - Basic 139,238 139,238 Weighted average shares outstanding- Diluted 139,739 ..... 139,739 Dividends declared per share ...... 1 Bed Bath & Beyond INC. and Subsidiaries Statement of Retained Earnings Year ended March 3, 2018 $ in thousands ....... ...... Net earnings 424,858 Other comprehensive (loss) income Change in temporaty impairment of auction rate securities, net of taxes &.....A....A. 424,858 95 95 Pension adjustment, net of taxes 2,021 2,021 Currency translation adjustment (2,548) Reclassification due to the adoption of ASU 2018-02 (614) ....A... (2,548) (614) Other comprehensive (loss) income 1,083) 1,083) Comprehnsive income 423,812 .... 423,812Bed Bath & Beyond INC. and Subsidiaries Balance Sheet March 3, 2018 $ in thousands ASSETS Current Assets 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 Updated Cash and cash equivalents 346,140 Accounts Receivable 70,000 308,039 .A.........' 346,140 70,000 Short term investment securities Merchandise inventories 2,730,874 Prepaid expense and other current assets 516,025 ..A........". 308,039 $ 2,730,874 516,025 Total Current Assets 3,971,078 3,971,078 3 Long term investment securities 19,517 19,517 Property and equipment, net 1,909,289 1,909,289 Goodwill 716,283 716,283 Other assets 424,639 424,639 Total Assets $ 7,040,806 $ 7,040,806 8 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilties Accrued expenses and other liabilities $ 1,197,504 ....... ......... $ 1,197,504 Merchandise credit and gift card liabilities 633,100 633,100 Current income taxes payable 835,081 335,081 Total Current Liabilities 2,165,685 2,165,685 Deferred rent and other liabilities 431,592 ...... 431,592 Income taxes payable 62,823 62,823 Long term debt 1,492,078 1,492,078 otal Liabilities 4,152,178 4,152,178 8 Shareholders' Equity Preferred stock ...... Common stock 3,418 3,418 Additional Paid-in capital 2,057,975 2,057,975 Retained earnings 11,343,503 11,343,503 Treasury stock, at cost (10,467,972) (10,467,972) Accumulated other comprehensive loss (48,296) . ....... (48,296) Total Shareholders' Equity 2,888,628 2,888,628 Total Liabilities and Shareholders' Equity $ 7,040,806 $ 7,040,806