Question
Question 2 (20 marks) Before year-end adjustments are made, the December 31, 2018 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of
Question 2 (20 marks)
Before year-end adjustments are made, the December 31, 2018 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of $7,500. Adjustments are necessary for the following items:
- Depreciation for the year is $2,000.
- Revenue earned but not yet billed is $4,000.
- Accrued interest expense is $1,000.
- Supplies used, $3,500.
- Revenue collected in advance that is now earned is $4,000.
- Portion of prepaid insurance expired during the year is $2,750.
Required:
- Record the above adjusting entries in 2018 Journal. [12 Marks]
- Open One T-account and post to Service Revenue account ONLY, then compute its adjusted balance as on December 31, 2018. (4 Marks)
- Calculate the correct Net Income (Net Loss) for Ahmads Adventures for the year ended Dec.31, 2018 (After adjustments). (4 Marks)
Question 3 (20 marks)
A: ABC Company uses the perpetual inventory system and had the following transactions during August 2018:
Date Transaction Amount
June. 5 Purchased inventory on account $ 240,000
June. 9 Paid for transportation of goods purchased 25,000
June. 10 Returned defective merchandise to the seller 35,000
June. 15 Paid for goods purchased on August 5 ?
Credit terms of invoice are 2/15, n/45.
Required: Prepare the general journal entries to record these transactions. Explanations are not required. [9 marks].
B: X cite Company uses Perpetual Inventory System. The following information is available for the month of March:
Mar. 1 Beginning inventory 200 units @$15
Mar. 5 Purchased 80 units @$18
Mar. 10 Sold 120 units @$30
Mar.15 Purchased 140 units @$20
Mar.25 Sold 100 units @$30
Required:
Prepare perpetual inventory record for X cite Company using LIFO inventory costing method. (11 Marks)
Question 4 (20 marks)
The following is the adjusted trial balance as of December 31, 2019 of HALA Photography:
HALA Photography
Adjusted Trial Balance
December 31, 2019
Account | Debit | Credit |
Cash | $3,400 |
|
Accounts Receivable | 17,000 |
|
Supplies | 200 |
|
Equipment | 15,000 |
|
Accumulated DepreciationEquipment |
| $4,000 |
Accounts Payable |
| 2,400 |
Salaries Payable |
| 1,600 |
Unearned Revenue |
| 1,200 |
Common Stock |
| 6,800 |
Dividends | 4,600 |
|
Service Revenue |
| 80,000 |
Salaries Expense | 48,000 |
|
Supplies Expense | 4,600 |
|
Depreciation ExpenseEquipment | 3,200 | ______ |
Total | $96,000 | $96,000 |
Requirements:
- Journalize the closing entries for HALA Photography (10 Marks).
- Compute the ending balance of Retained Earnings (after closing the entries) (4 mark).
- Prepare post-closing trial balance at December 31, 2019 (6 Marks)
Please I need full answer for each Question.
and please this is the third time I send the questions and no good answered please please do not send pic and send to day.
thank you.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started