Q1;

B.M Company purchased truck on June 1 for $90,000, paying $20,000 cash and signing a 9%, 2-month note for the remaining balance. The truck is expected to depreciate $18,000 each year. B.M Garment Company prepares monthly financial statements.

Instructions

(a)Prepare the general journal entry to record the acquisition of the truckon June 1st.

(b)Prepare adjusting journal entries that should be made on June 30th.

Q2

Q2( 4 points)

Answer the following independent questions and show computations supporting your answers.

B.M Company uses the periodic inventory method and had the following inventory information available:

UnitsUnit CostTotal Cost

1/1Beginning Inventory100$4$400

1/20Purchase400$62,400

7/25Purchase200$71,400

10/20Purchase300$82,400

1,000$6,600

A physical count of inventory on December 31 revealed that there were 400 units on hand.

1.Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $_______ .

2.Assume that the company uses the Average-Cost method. Thecost of goods sold on December 31 is $__________.

Q3 ( 2points)

B.MCompanyOperations cash account has a month endbalance of $128,002.Outstanding checks as of month end totaled $3,050.Deposits in transit totaled $100 at month end.The company incorrectly recorded apayment on their books for $125 that correctly clearedthe bank for$152. The amount was originally posted to miscellaneous expense.The bank statement also shows aservice charge of $100 on theaccount.The balance per thebank statement is $130,825.

Instructions

What is the correct balancefor cash in bankshould be reported at the end of month?

$__________.

Q4 ( 4 Points)

B.M Company purchased equipment on January 1, 2017 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.

Instructions

Answer the following independent questions.

1.If 16,000 units of product are produced in 2017 and 24,000 units are produced in 2014, what is the book value of the equipment at December 31, 2018? The company uses the units-of-activity depreciation method.

2.If the company uses the double-declining-balance method of depreciation, what is the balance of the Accumulated Depreciation?Equipment account at December 31, 2015?

91 (5 points] B.M Company purchased truck on June 1 for $90,000, paying $20,000 cash and signing a 9%, 2-month note for the remaining balance. The truck is expected to depreciate $18,000 each year. B.M Garment Company prepares monthly nancial statements. Instructions (a) Prepare the general journal entry to record the acquisition of the tmck_on June 1st. (b) Prepare any adjusting journal entries that should be made on June 30th