Ques: Record the transactions and prepare the financial statements for ABC. Co for the fiscal year ended on December 31, 2019. Dec 1: Invested $78000 in cash and office equipment that had face value of $51000 in the business. 2: Purchased office equipment $25000 and office supplies for $16000 on credit from the same supplier 4: Paid the $1125 salary of the receptionist 5: Paid the utility bill with $930 cash. 6: Performed security services for a sold-out concert and received $12000 cash from the client. 7: Completed security services for a graduation event and sent the bill for $3500 to them. 8: Paid $15000 in cash regarding the outstanding accounts payable Dec 2 9: Paid advertising expense $1050, travel Expense $550, Insurance Expense $680 all in cash from the month of December. 10: Received $1600 from the client billed on Dec 7. 11: Received the telephone bill today: $2600 but will be paid on Jan 15. 12: Signed for the security services contract to start in Feb 1 13: Purchased Office supplies $5000 on credit. 14: Received $9200 in photography Revenue. 15: Purchased furniture $1500 on Dec 15 but cheques were sent to the supplier after 2 days merely on Dec 17 18: Office supplies were used worth $570. 26: Certain gifts were purchased $2500 for the employees on Christmas and company considered them under Miscellaneous Expense Required: a. Journal, Ledger, Trial Balance b. Income statement, statement of changes in Equity, Balance sheet on Dec 31,2019for Abc Inc Inventory ABC CO. is a partnership firm of 3 friends Alpha, Beta and Conny. They sell car wash cleaners. They use perpetual inventory system and made purchases and sales of a product in 2020 as fallows Part 1. Date Inventory Units Prices Total Jan Beg. Inventory 110 @ 7.00 (C.P) 770 Jan 10 Sold 80 @ 15.SOS. P) 1240 Feb 7 Purchased 300 6.30 (CP) 1890 Feb 15 Sold 130 @ 15.50 (S.P) 2015 Mar 10 Purchased 550 v 6.10 ( P 3355 Mar 27 Purchased 500 6.00 (CP) 3000 Mar 29 Sold 670 15.50 (S.P) 10385 S. P= Selling Price C.P= Cost Price Ques: Calculate the Gross profit and Cost of Good Sold for ABC. Co by using perpetual inventory system for Part 1 a. FIFO b. Moving Weighted Average Method (COGS: a) $5527 b) $5476) Part 2. ABC are now in the month of July and make purchases and few sales. Calculate the Gross profit and Cost of Good Sold for ABC. Co by using perpetual inventory system a. FIFO b. Moving Weighted Average Method (COGS: a) $11388 b) $11484) Date Inventory Units Price $ Total July! Beg. Inventory 21 46 (CP) 1240 July 7 Purchases 66@51 (CP) 1890 July 10 Purchases 11656 (CP) July 15 Sale 61 @ 130 (S.P) 2015 July 10 Purchases 62 56(CP) 3355 July 29 Sales 152 130 (S.P) 10385 S. P= Selling Price C.P = Cost Price
