AC2799 Wk5 Exercise - 7 Office Supplies remaining $ 245...

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Jonathon Myhre 8/28/15 AC2799: Week 5 Exercise Year-End Journal Entries Year-End Journal Entries Jonathon Myhre ITT Technical Institute AC2799: Accounting Capstone
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Jonathon Myhre 8/28/15 AC2799: Week 5 Exercise Year-End Journal Entries Calculations 1. Depreciation Machinery Cash (2011/2012) 22,000 Residual value 6,000 16,000 Depreciation-5 years = 16000 ÷ 5 = 3,200 Accumulated depreciation Year 1 3,200 Year 2 6,400 Year 3 9,600 2. Depreciation truck Cost (1.1.12014) 20,000 Residual Value 0 20,000 Depreciation 20,000 ÷ 4 = 5,000 3. Prepaid Insurance No figures are given but the entries are that debit prepaid insurance and credit cash 4. Unearned income 40% completed there is no data but the entries are as follows: Debit unearned income and credit service income 5. Wages expense due $4,500 Wages expense 4,500 Wages payable 4,500 6. Cash reserve No data is available
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Jonathon Myhre 8/28/15 AC2799: Week 5 Exercise Year-End Journal Entries 7.
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Unformatted text preview: 7. Office Supplies remaining $ 245 Debit: Office Supplies Credit: Office suppliers 8. Sales Tax payable No data 9. Interest payable No data 10. COGS – Blood Pressure Monitors Beginning Inventory 89,950 Purchases 1 29,325 Purchases 2 99,000 218,275 Less ending inventory 60 x 330 = 19,800 Cost of goods sold 198,475 LIFO method has been used to value ending inventory 11. Cost of goods sold – Ultrasound Scanners Jonathon Myhre 8/28/15 AC2799: Week 5 Exercise Year-End Journal Entries Beginning Inventory 261,600 Purchases 1 108,750 Purchases 2 40,000 410,350 Less ending inventory 188,750 Cost of goods sold 221,600 Ending inventory is arrived as follows using LIFO method 1000 x 400 = 400 x 100 = 40,000 250 x 435 = 108,750 = 108,750 100 x 400 = 40,000 = 40,000 Total 188,750 Purchase 2 has been to adjusted to the correct amount of (400 x 1000) = 400,000...
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