Question

1. Indicate the status of each of the listed ledger accounts.

2. The following are the steps in the financial accounts compilation, using a spread sheet approach. List the steps in the correct order in which they are to be completed, given the list of ledger accounts at fiscal year-end: (Simply match the letter with the number in the box).
a. Prepare adjusted trial balance                                             f. Post transactions
b. Prepare an unadjusted trial balance                                    g. Journalize transactions

2. The following are the steps in the financial accounts compilation, using a spread sheet approach. List the steps in the correct order in which they are to be completed, given the list of ledger accounts at fiscal year-end:

(Simply match the letter with the number in the box).
a. Prepare adjusted trial balance                                             f. Post transactions
b. Prepare an unadjusted trial balance                                    g. Journalize transactions
c. Prepare the income summary.                                            h. Close the temporary accounts
d. Adjust the ledger accounts                                                  j. Prepare a post-closing trial balance
e. Analyze transactions

4. At the beginning of 2018, Beta Company's balance sheet reported Total Assets of $255,000 and Total Liabilities of $124,000. During 2018, the company reported total revenues of $275,000 and expenses of $187,000. Also, owner withdrawals during 2018 totaled $35,000. Assuming the owner contributed an additional $15,000 during the year, what will be the balance in the owner's capital account at the end of 2018?

5. On 10/15/2019, a company borrowed $28,000 from a bank, for 90 days, at 6% interest. Payment of capital and interest is on due date. On fiscal year end 12/31/2019, the company needed to record interest owed. Record the adjusting entry necessary.

6. The following unadjusted and adjusted trial balances were taken from the current year's accounting system for High Point, Inc.

In general journal form, present the six adjusting entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance.

7. A company purchased $6,800 worth of merchandise 3/10, N/35. Transportation cost was an additional $65, paid in cash. Three days after receipt of merchandise, the company returned $300 worth of merchandise. It later paid the invoice within eight days of purchase. The total cost of this merchandise taken into inventory, under the perpetual inventory system, will be what amount?

8. A company markets a sports equipment and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during the first week of January, football cleats were as follows:
January 1           Beginning balance          20 pairs @ $35 per pair.

January 3           Purchased                        36 pairs @ $38 per pair.

January 4           Sold                                 25 pairs @ $50 per pair.

January 6           Purchased                        22 pairs @ $40 per pair.

January 7           Sold                                 30 pairs @ $50 per pair.

Required: Using the LIFO method of valuation, determine the:   a) Cost of sales

                                                                                                                           b) Value of the ending inventory.

c. Prepare the income summary.                                            h. Close the temporary accounts
d. Adjust the ledger accounts                                                  j. Prepare a post-closing trial balance
e. Analyze transactions

9. Neighborhood Electronics runs a small store carrying four items of inventory. At the end of its fiscal year, the physical stock take, their book value, and the market (replacement) price was compiled.

                                                       Units                  Book cost       Market price

              Cell phones                     128                     $85                             $66

              Android Tablets                76                         54                                 60

              Kindles                              47                     105                               108  

              Chrome books                24                         63                                 61    

The company's policy is to record closing inventory at lower of cost or market value, using individual valuation. What correcting entries will this company make at the fiscal year end? (Use the below journal template).

                                                                                   Adjustment Journal

10. Fill in the numbered spaces 1 - 9, in the following separate income statements, for non-related companies A through C.

Answer 1