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ACCT 220 WEEK 3 HOMEWORK

ACCT 220 WEEK 3 HOMEWORK

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Author: Joyce Buda
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Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries.
 
 
 
 
 
 
Baltimore Glass Company
 
 
Trial Balance
 
 
December 31, 2015
 
 
 
 
 
 
 
 
Acct.
 
 
 
 
 
No.
Account Title
Debit
Credit
 
 
101
Cash
 88 450
 
 
 
110
Accounts Receivable
 195 613
 
 
 
120
Merchandise Inventory
 256 250
 
 
 
125
Supplies on Hand
 3 252
 
 
 
130
Prepaid Insurance
 3 500
 
 
 
131
Prepaid Rent
 7 500
 
 
 
150
Equipment
 175 285
 
 
 
160
Accumulated Depreciation
 
 24 260
 
 
202
Accounts Payable
 
 72 555
 
 
210
Wages Payable
 
 -  
 
 
301
Capital Stock
 
 220 000
 
 
302
Retained Earnings, January 1
 
 211 144
 
 
401
Sales
 
 998 250
 
 
405
Sales Returns and Allowances
 5 145
 
 
 
410
Interest Income
 
 1 500
 
 
500
Purchases
 560 880
 
 
 
501
Purchases Discounts
 
 4 080
 
 
502
Purchases Returns and Allowances
 
 1 200
 
 
505
Freight In
 4 580
 
 
 
520
Advertising Expense
 1 000
 
 
 
530
Sales Salaries Expense
 88 600
 
 
 
532
Supplies Expense
 -  
 
 
 
540
Office Salaries Expense
 124 500
 
 
 
550
Utilities Expense
 8 594
 
 
 
555
Insurance Expense
 -  
 
 
 
560
Professional Fees Expense
 3 000
 
 
 
570
Depreciation Expense
 -  
 
 
 
580
Interest Expense
 6 840
 
 
 
 
 
 1 532 989
 1 532 989
 
 
 
 
 
 
 
 
Adjusting items:
 
 
 
 
 
1. The remaining prepaid insurance at year end is $3,000
 
 
 
 
2. A physical inventory shows supplies on hand of $2,000 at year end
 
 
 
3. The prepaid rent of $7,500 covers January 2015 rent 
 
 
 
 
4. Depreciation on equipment is $12,000 for the year
 
 
 
 
5. At year end sales salaries of $3,000 were earned but unpaid
 
 
 
 
6. At year end office salaries of $4,000 were earned but unpaid
 
 
 
 
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet.
8. A physical count of inventory shows a value of $219,100.  The periodic inventory method is used.
 
 
 
 
 
 
 
Do the following requirements below.  Create proper headings for each statement.
 
 
1. Record adjusting journal entries from information above.  It is possible that an item may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made
 
 
 
3. Prepare a classified income statement.  Supplies is a sales expense.  January 1 inventory was $219,115.
 
4. Prepare a statement of retained earnings
 
 
 
 
5. Prepare a classified balance sheet
 
 
 
 
6. Prepare closing journal entries
 
 
 
 
 
 
 
 
 
 
 
Compute the ending inventory using LFIO for both the  periodic and the perpetual methods below:


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