Score Part 3: Inventory valuation methods (16%, 4 points each) Lenon Services has the following information regarding the inventory quantities, purchases, and sales of a type of merchandise during the year of 2019: Number of Cost per unit Total cost Units yuan (yuan) Beginning inventory. Jan. 1, 2019 1296 30 38880 Mar. 03 Purchase 510 25 13500 Jun. 02 Purchase 605 35 21168 Sep. 07 Purchase 389 40 15552 Goods available for sale 2830 89100 Units sold 1800 Units in ending inventory 1030 Using the information in the table above, compute the following: 1. The cost of goods sold in the year of 2019 by using the LIFO method is: _yuan 2. The cost of goods sold in the year of 2019 by using the FIFO method is: yuan 3. The cost of ending inventory by using the FIFO method is: yuan 4. Assume that Lemon Services adopts the periodic inventory system, use the Weighted Average cost method to calculate the Ending inventory is: yuan Score Part 4: Comprehensive questions (53%) A partial worksheet of Wang's Service as of December 31, 2018, the end of current fiscal year, are presented below: Trial Balance Account Name Debit Credit Cash 246, 960 Accounts Receivable 47.250 Merchandise Inventory 52.290 Store Supplies 3, 654 Prepaid Insurance 3.780 Equipment 157, 500 Accumulated Depreciation: Equipment 6, 300 Accounts Payable 48, 510 Wang, Capital 240, 219 Wang, Drawing 3, 150 Sales 744, 660 Sales Returns and Allowances 7.500 Purchases 428.400 Purchases Returns and Allowances 4,284 Purchase discount 2,016 Salary Expense 94,500 Utilities Expense 945 1.045,989 1.045,989 The data for adjustments are as follows: (1) Ending merchandise inventory. 50,000 yuan. (2) Store supplies used during the year. 1827 yuan. (3) Insurance expired during the year, 945 yuan. (4) Depreciation of equipment for the year, 2100 yuan. 4/7 Using the information above, please answer the following questions: 1. Prepare an income statement. (18%) Wang's Service Income Statement for the year ended December 31, 2018 Revenue from Sales: Cost of Goods Sold: Gross Profit: Operating Expenses: Net Income 1. The second step in accounting cycle is to A. Prepare financial statements B. Post journal entries to ledger accounts C. Prepare a trial balance D. None of the above 2. If a book store has working capital of 25,000 yuan and current assets of 75,000 yuan, the current ratio of the restaurant is) A 0.5 B. 1 C. 1.5 D. 2 17 3. If, for the current fiscal period, the Sale: i: 200,000 yuan. Sales returns and allowances is 35,000 yuan, Sales discount i: 25,000 yuan, Cost of goods sold is 105,000 yuan, then the Gross profit rate is) A 794 B. 52.5 c.254 D. 17.5 4. If a journal entry increase an asset account, the other part of the entry night) A. Decrease an asset account. B. Increase a revenue account C. Increase a liability account D. All of the above Score Part 2:Classification of special journals (15%, 3 points each) For each of the following transactions indicates the journal which should be used by placing the appropriate symbol in the table provided: S = Sales Journal: P = Purchases Journal: CR=Cash Receipts Journal: CP = Cash Payments Journal: J = General Journal. 1. Collected money from making cash sale. ( ) 2. Recorded adjusting entry for prepaid insurance.) 3. Paid wages expense to employees. ( ) 4. Purchased inventories from suppliers on account. ) 5. Sold inventories to customers on account. ( ) 2/7 2. Prepare a statement of owner's equity. (10%) Statement of Owner's Equity For the year ended December 31, 2018 3. Prepare a balance sheet. (15%) Balance Sheet For the year ended December 31, 2018 Assets Current Assets: Plant and Equipment: Total Assets Liabilities & Owner's Equity Current Liabilities: Owner's equity: Total Liabilities and Owner's Equity 6/7 4. Journalize the adjusting entries. (10%) Wang's Service Adjusting entries Date Account Name Debit Credit