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Posted on Jul 26, 2024

QUESTION 1: MERCHANDISING AND INVENTORY VALUATIONS (20 MARKS 1. A merchandising businesses ng business sells merchandise for $20,000 cash. This matchandises bid or $20.000 cash.

QUESTION 1: MERCHANDISING AND INVENTORY VALUATIONS (20 MARKS 1. A merchandising businesses ng business sells merchandise for $20,000 cash. This matchandises bid or $20.000 cash. This marcha the company $12,000. the company uses a perpetual inventory method. Prepare the journal entries to record this sale (4 marks) Date Account Title Ref Debit INVENTORY VALUATIONS Beta Radios uses a periodic inventory system. The beginning inventory of Model XS radios and the purchases for the year were as follows (16 marks) Jan. 1 Beginning inventory Apr. 15 Purchase 1,000 units @ $10.00 500 units @ $12.00 300 units @ $13.00 1,000 units @ $14.00 TOPO 6900 3900 June 7 Purchase Sept. 22 Purchase Dec. 4 Purchase 700 units @ $15.00 11500 Total available for sale in the year 3,500 units At December 31, the ending inventory consisted of 1,000 units. Determine the cost of the year-end inventory and the cost of goods sold under each of the following methods of inventory valuation (4 marks for each answer): COST OF INVENTORY GOODS SOLD VALUE AT DEC. 31 FIFO AVERAGE COST INVENTORY VALUATIONS a Radios uses a periodic inventory system. The beginning inventory of Model X5 radios and the purchases for the year were as follows: (16 marks) Jan. 1 Beginning inventory 1,000 units @ $10.00 Apr. 15 Purchase 10.000 6,000 3900 500 units @ $12.00 300 units @ $13.00 June 7 Purchase Sept. 22 Purchase 1,000 units @ $14.00 14,000 Dec. 4 Purchase 700 units @ $15.00 10,500 Total available for sale in the year 3,500 units At December 31, the ending inventory consisted of 1,000 units. Determine the cost of the year-end inventory and the cost of goods sold under each of the following methods of inventory valuation (4 marks for each answer): QUESTION 2: TRIAL BALANCE (14 marks) Following are the March 31, 2019 account balances (in alphabetical order) for Class Consulting Prepare a Trial Balance. Accounts Payable Accounts Receivable Accumulated Depreciation, Building Building Cash C. Class, Capital C. Class, Drawings Inventory Land Prepaid Insurance Rent Expense Salary Expense Service Revenue $48,000 $25,000 $100,000 $210,000 $20,000 $120,000 $4,000 $60,000 $100,000 $3,000 $6,000 $15,000 $175,000 a hit QUESTION 5: FINANCIAL STATEMENTS (20 marks) Listed below are the accounts and balances for Cisco Painting as at December 31, 2018. These are from the December 31, 2018 Adjusted Trial Balance and are listed in alphabetical ceder t e s Required: (a) Prepare an Income Statement for the year ended December 31, 2018 (6 marks) (b) Prepare a Balance Sheet at December 31, 2018 (14 marks) Accounts payable Accounts receivable Cash Cisco, Capital, Dec. 1. 2018 Depreciation expense - equipment Equipment Land Mortgage payable Prepaid rent Rent expense Service revenue Utilities expense Wages expense 44,000 31,000 24,000 98,000 2,000 22,000 118,000 35,000 8,000 3,000 46,000 7.000 8.000 QUESTION 1: MERCHANDISING AND INVENTORY VALUATIONS (20 MARKS 1. A merchandising businesses ng business sells merchandise for $20,000 cash. This matchandises bid or $20.000 cash. This marcha the company $12,000. the company uses a perpetual inventory method. Prepare the journal entries to record this sale (4 marks) Date Account Title Ref Debit INVENTORY VALUATIONS Beta Radios uses a periodic inventory system. The beginning inventory of Model XS radios and the purchases for the year were as follows (16 marks) Jan. 1 Beginning inventory Apr. 15 Purchase 1,000 units @ $10.00 500 units @ $12.00 300 units @ $13.00 1,000 units @ $14.00 TOPO 6900 3900 June 7 Purchase Sept. 22 Purchase Dec. 4 Purchase 700 units @ $15.00 11500 Total available for sale in the year 3,500 units At December 31, the ending inventory consisted of 1,000 units. Determine the cost of the year-end inventory and the cost of goods sold under each of the following methods of inventory valuation (4 marks for each answer): COST OF INVENTORY GOODS SOLD VALUE AT DEC. 31 FIFO AVERAGE COST INVENTORY VALUATIONS a Radios uses a periodic inventory system. The beginning inventory of Model X5 radios and the purchases for the year were as follows: (16 marks) Jan. 1 Beginning inventory 1,000 units @ $10.00 Apr. 15 Purchase 10.000 6,000 3900 500 units @ $12.00 300 units @ $13.00 June 7 Purchase Sept. 22 Purchase 1,000 units @ $14.00 14,000 Dec. 4 Purchase 700 units @ $15.00 10,500 Total available for sale in the year 3,500 units At December 31, the ending inventory consisted of 1,000 units. Determine the cost of the year-end inventory and the cost of goods sold under each of the following methods of inventory valuation (4 marks for each answer): QUESTION 2: TRIAL BALANCE (14 marks) Following are the March 31, 2019 account balances (in alphabetical order) for Class Consulting Prepare a Trial Balance. Accounts Payable Accounts Receivable Accumulated Depreciation, Building Building Cash C. Class, Capital C. Class, Drawings Inventory Land Prepaid Insurance Rent Expense Salary Expense Service Revenue $48,000 $25,000 $100,000 $210,000 $20,000 $120,000 $4,000 $60,000 $100,000 $3,000 $6,000 $15,000 $175,000 a hit QUESTION 5: FINANCIAL STATEMENTS (20 marks) Listed below are the accounts and balances for Cisco Painting as at December 31, 2018. These are from the December 31, 2018 Adjusted Trial Balance and are listed in alphabetical ceder t e s Required: (a) Prepare an Income Statement for the year ended December 31, 2018 (6 marks) (b) Prepare a Balance Sheet at December 31, 2018 (14 marks) Accounts payable Accounts receivable Cash Cisco, Capital, Dec. 1. 2018 Depreciation expense - equipment Equipment Land Mortgage payable Prepaid rent Rent expense Service revenue Utilities expense Wages expense 44,000 31,000 24,000 98,000 2,000 22,000 118,000 35,000 8,000 3,000 46,000 7.000 8.000