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Omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines, and double-underlines where required.Question 1(40 points)XYZ Company's December 31, 2015, trial balance is as follows:XYZ CompanyTrial BalanceDecember 31, 2015AccountDebitCreditCash$ 43,500Accounts Receivable53,500Allowance for Doubtful Accounts1,500Notes Receivable30,000Merchandise Inventory55,000Land20,000Building150,000Accumulated Depreciation, Building$ 15,000Equipment50,000Accumulated Depreciation, Equipment21,000Goodwill26,000Accounts Payable25,000Long-Term Notes Payable75,000Common Stock, $10 par, 2,000 shares authorized and outstanding20,000Retained Earnings147,000Sales Revenue700,000Salaries Expense150,000Utilities Expense3,500Cost of Goods Sold350,000Administrative Expenses55,000Sales Expenses15,000_______Totals$1,003,000$1,003,000XYZ is a small company and records adjusting entries and closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.Additional Information:a.Notes Receivable is a 3-month, 6% note accepted on November 1, 2015.
b.Long-Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2015. Interest is payable annually.c.Building is depreciated at 3% per year. There is no salvage value.d.Equipment is depreciated at 15% per year. There is no salvage value.e.XYZ discovered, on December 30, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.f.The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.g.Salaries for the last half of December, payable in January, amount to $5,500.h.XYZ estimates that of the Accounts Receivable, 5% will not be collectable.Required:Question 1 options:Skip Toolbars for .More Insert actions.Show All ComponentsSaveXYZ Company uses the period method and had the following inventory events during January:DateUnitsPurchasedUnitCostDateUnitsSoldUnit SalesPrice
Jan. 1150$7.00Jan. 2100$10.00Jan. 52257.20Jan. 712510.00Jan. 101007.50Jan. 127512.00Jan. 151507.80Jan. 1720012.50Jan. 202007.95Jan. 2415015.00Jan. 251508.00 Jan. 30758.20 Note:The January 1 amounts were the beginning inventory and unit value.(Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.)Required:a.Calculate the cost of goods available for sale.b.Calculate the dollar value of sales.c.Calculate the value of Ending Inventory and Cost of Goods Sold under the following independent assumptions:(1) LIFO method(2) FIFO method(3) Average-cost methodQuestion 2 options:SaveQuestion 3(7 points)Required:Prepare Acme Supply Company's general journal entries for the following transactions: