Q.No. 2 (Data given above in Reno De Filippis problem) a) Prepare the necessary Journal for Closing Entries at August 31, 2017. b) Prepare an After-Closing Trial Balance dated August 31, 2017. Part III-CLO: 3, (10 Marks) Q.No.3 1. Do adjusting entries affect income statement accounts, balance sheet accounts, or both? Explain 2. In general terms, identify several factors that prompt different countries to develop different accounting principles? 3. Define the term inventory shrinkage. How is the amount of inventory shrinkage determined in a business using a perpetual inventory system, and how is this shrinkage recorded in the accounting records? 4. What is meant by the term unearned revenue? Where should an unearned revenue account appear in the financial statements? As the work is done, what happens to the balance of an unearned revenue account? Part IV-CLO:3, (10 Marks) Q.No.4 Assume that Bass Track had 100 units in beginning inventory on July 1, 2002, and that the cost of these units was $10 each. During the month, the inventory transactions were as follows: Date July 6 July 12 July 19 July 24 July 28 Activity Purchase Purchase Sale Purchase Sale Number of units Cost per unit 50 $11 80 $12 100 90 $14 50 Using FIFO and ACM methods, what are? 1. The cost of goods sold for the month. 2. The ending inventory for the month. Q.No. 2 (Data given above in Reno De Filippis problem) a) Prepare the necessary Journal for Closing Entries at August 31, 2017. b) Prepare an After-Closing Trial Balance dated August 31, 2017. Part III-CLO: 3, (10 Marks) Q.No.3 1. Do adjusting entries affect income statement accounts, balance sheet accounts, or both? Explain 2. In general terms, identify several factors that prompt different countries to develop different accounting principles? 3. Define the term inventory shrinkage. How is the amount of inventory shrinkage determined in a business using a perpetual inventory system, and how is this shrinkage recorded in the accounting records? 4. What is meant by the term unearned revenue? Where should an unearned revenue account appear in the financial statements? As the work is done, what happens to the balance of an unearned revenue account? Part IV-CLO:3, (10 Marks) Q.No.4 Assume that Bass Track had 100 units in beginning inventory on July 1, 2002, and that the cost of these units was $10 each. During the month, the inventory transactions were as follows: Date July 6 July 12 July 19 July 24 July 28 Activity Purchase Purchase Sale Purchase Sale Number of units Cost per unit 50 $11 80 $12 100 90 $14 50 Using FIFO and ACM methods, what are? 1. The cost of goods sold for the month. 2. The ending inventory for the month
