Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show me the Journal entries please? 11. AG purchased $30,000 of inventory on credit throughout the year. The inven- tory purchases were (in order of

show me the Journal entries please?
image text in transcribed
11. AG purchased $30,000 of inventory on credit throughout the year. The inven- tory purchases were (in order of purchases) 10,000 units at $1.00/unit, 5,000 units at $2.00/unit, and 20,000 units at 50cents/unit. AG uses LIFO perpetual method for accounting for inventory. AG incorporates the Lower of Cost or Market in determining ending inventory. Assume that the market value of the inventory suggested a value of $7,000. On January 2 of 2015, AG issued bonds with a face of 100,000, stated rate of 10%, term 5 years and received $103,956. Market Rate is 9%. Interest is paid every January 1. AG purchased with cash $25,000 of supplies. AG received $40,000 in cash for delivery of inventory in January AG had miscellaneous depreciation expense of $3,000, and paid cash for rent of $20,000. AG invested $20,000 in bank CDs on December 31, 2015. 10% ma- tures in February of 2016 and the remaining matures in July AG purchased equipment of $50,000 on credit. There was $4,000 additional fees paid in cash for the installation and set-up of the machine. Accrue income tax at a rate of 35%. AG received $500 of dividends in cash from investments and paid $3,000 in dividends to its owner. At year-end there were $5,000 of supplies re- maining in inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

DCAA Contract Audit Manual Volume 1

Authors: Defense Contract Audit Agency

1st Edition

B08HTL19V5, 979-8684992995

More Books

Students also viewed these Accounting questions

Question

4. How does Buehler serve as a moral exemplar?

Answered: 1 week ago

Question

Develop successful mentoring programs. page 400

Answered: 1 week ago