Questions

1. Jones Company is a merchandise company that uses the perpetual inventory method. The business prepares financial statements on a monthly basis and has the following adjusted trial balance at January 31:

8,000 Cash 10,000 Notes payable (all long-term)

11,000 Accounts receivable 42,600 Owners capital, January 1

22,500 Merchandise inventory 4,000 Owners withdrawals

34,200 Equipment 314,700 Sales revenue

7,400 Accumulated depreciation 230,400 Cost of goods sold

5,800 Accounts payable 71,400 Operating expenses

1,000 Wages payable

1. Prepare a MUTLIPLE STEP income statement for Jones Company IN GOOD FORMAT for January.

2. Prepare a statement of owners equity for Jones Company IN GOOD FORMAT for January.

C. Prepare a classified balance sheet for Jones Company IN GOOD FORMAT for January.

2. A business that uses the perpetual inventory method has the following financial data regarding its merchandise inventory for January:

Beginning inventory 20 units at $5.00 each

January 1: Purchase 50 units at $5.50 each

January 5: Purchase 60 units at $6.00 each

Ending inventory 35 units

All January sales occurred after January 5.

1. Determine COST OF GOODS SOLD for January under FIFO.
2. Determine COST OF GOODS SOLD for January under LIFO.