Question
Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2018 year-end financial statements. Specifically, you must complete: 1) any
Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2018 year-end financial statements. Specifically, you must complete:
1) any necessary correcting journal entries
2) all the adjusting journal entries
3) the Trial Balances
4) the closing journal entries
5) a complete Multi-step Income Statement for the year ended Dec. 31, 2018
6) a classified Balance Sheet as of December 31, 2018.
a. Cost of Goods Sold: ARS uses a periodic FIFO inventory system for its normal restaurant equipment operations. A physical inventory count indicated 40,000 units on hand at the end of 2018.
| PURCHASES FOR 2018 (normal operations) Beginning units: | 15,000 units @ $90.00 each |
| Purchases: | |
| Apr - May | 30,000 units @ $90.90 each |
| Jun - Jul | 40,000 units @ $91.35 each |
| Aug - Sep | 34,000 units @ $91.80 each |
| Oct | 25,000 units @ $92.25 each |
| Nov - Dec | 28,000 units @ $92.70 each |
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