QUESTION 1

QUESTION 2

ROCKET COMPANY INC. Worksheet For the Year Ended December 31, 2018 Adjusted Trial Balance Dr. Cr. No. Account Titles 101 Cash 8,100 112 Accounts Receivable 10,800 126 Supplies 1,500 130 Prepaid Insurance 2,000 151 Office Equipment 24,000 152 Accumulated Depreciation Office Equipment 200 Notes Payable 201 Accounts Payable 212 Salaries Payable 230 Interest Payable 311 Common Stock 320 Retained Earnings 332 Dividends 7,000 400 Service Revenue 610 Advertising Expense 8,400 631 Supplies Expense 4,000 711 Depreciation Expense 5,600 722 Insurance Expense 3.500 726 Salaries Expense 31,000 905 Interest Expense 600 Totals 106,500 5,600 15,000 6,100 2,400 600 10.000 5,800 61,000 106,500 Instructions (a) Complete the worksheet by extending the balances to the financial statement columns. (b) Prepare an income statement, a retained earnings statement, and a classified balance sheet. (Note: $9,000 of the notes payable become due in 2019.) (c) Prepare the closing entries. Use J14 for the journal page. (d) Post the closing entries. Use the three-column form of account. Income Summary is No. 350. (e) Prepare a post-closing trial balance. Chubby Inc is a retailer operating in thetown. Chubby uses the perpetual inventory method. All ales retum from the customer result in the goods being returned to inventory, the inventory is not damage. Assume that there are no credit transactions, all amounts are settled in cash. You are provided with the following information for Chubby Inc. for the month of January 2019. Date Description Quantity Unit cost or selling price $15 60 110 January 1 January 5 January 8 January 10 January 15 January 16 January 20 January 25 Beginning inventory Purchase Sale Sales return Purchase Purchase return Sale Purchase 10 35 90 Required: (a) For each the following cost flow assumptions, calculate (1) cost of goods sold, (11) ending inventory and (111) gross profit. (1) LIFO (2) FIFO (3) Moving Average cost