Problem 1 Loree Co. sold merchandise to Green Comet Co. on account, S100,000, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $80,000. Loree Co. paid freight of S1,200. Instructions: a. Journalize the entries for Loree Co. (seller) and Green Comet Co. (buyer) for the sale, purchase and payment of amount due. Assume all discounts are taken. b. Show your work below. Problem 2 Beginning inventory, purchases and sales data for computer chips for June are as follows: Iaventory une Purchase 1.000 units at Sl 10 0unit ame 20 0 unit SPune Instructions: a. Assuming that the perpetual inventory systems is used, costing by the LIFO method determine the total purchases, cost of goods sold and ending inventory using the temnlate helow Problem 2 Beginning inventory, purchases and sales data for computer chips for June are as follows: Inventery June I Purchane Iaes K20unitS 1300 units a SIune 14 6 1.00 mits at S13une 10 Thune 20 Instructions: a. Assuming that the perpetual inventory systems is used, costing by the LIFO method determine the total purchases, cost of goods sold and ending inventory using the template below. MENOR DATE UNOO Jet 20 b. Assuming that the perpetual inventory systems is used, costing by the FIFO method determine the total purchases, cost of goods sold and ending inventory using the template below. AROWES UNFO MENTORY UNEOO UNFOO DALOT QUeTY Jet 10 14 20 20 c. Assuming that the perpetual inventory systems is used, costing by the Weighted average method determine the total purchases, cost of goods sold and ending inventory using the template below. MANCRY Aret 20 30 DENGNONOY Problem 3 The following data were accumulated for use in reconciling the bank account of Mihlos Co. for November: 1. Cash balance according to the company's records at November 30, $42,132 2. Cash balance according to the bank statement at November 30, S40,632 3. Checks outstanding. $3,105 4. Deposit in transit, not recorded by bank, $5,120 5. A check for S280 in payment of an account was erroneously recorded in the check register as S820 6. Bank debit memo for service charges, S25 Instructions: a. Prepare a bank reconciliation b. Show your work below. Problem 4 At the end of the current year, Accounts Receivable has a balance of $2,800,000, Allowance for Doubtful Accounts has debit balance of $15,000, and sales for the year total $10,000,000. Bad Debt Expense is estimated at % of 1% of sales. Instructions: Using the Percentage of sales method determine: a. The amount of the adjusting entry for uncollectible accounts b. The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and c. The net realizable value of accounts receivable d. Show your work below. Problem 4 At the end of the current year, Accounts Receivable has a balance of S2,800,000, Allowance for Doubtful Accounts has debit balance of S15,000, and sales for the year total S10,000,000. Bad Debt Expense is estimated at % of 1% of sales. Instructions: Using the Percentage of sales method determine: a. The amount of the adjusting entry for uncollectible accounts b. The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and c. The net realizable value of accounts receivable d. Show your work below. Problem 5 Equipment was acquired at the beginning of the year at a cost of $500,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of 50,000. Instructions: a. Compute depreciation for the l"and 2" year b. Assuming that the equipment was sold at the end of the second year for S380,000, determine the gain or loss on the sale of the equipment. c. Journalize the entry to record the sale of the equipment d. Show your work below
