80.2K

Verified Solution

Link Copied!

Where did I go wrong?

ACCT 201 Name Project 1 Instructions: You have just landed at temporary assignment at a small retail company in your area. The accountant, who had completed the books through the end of November, went out on maternity leave during the first week of December The task you have been given is to take the ending Trial Balance for November, prepare December transactions and adjustments, prepare the December financials, and close the books. The manager of the company has indicated that salaries, rent and depreciation for December are the same as the 11 months preceding (employees are paid at the end of the month). Additional transaction information follows December Advertising $900 December Communications $500 December Utilities $700 The manager is pretty sure that they use LIFO for inventory, but it could be FIFO. Given the November transactins, determine which of the two methods is used. Then, use that same method to value ending inventory for December Compute December Sales and Cost of Goods Sold, as well, and prepare the journal entries. Assume all inventory purchases are on credit. Also assume 80% of Sales are credit sales and the rest are for cash. November 11-01 begin with 500 units$22.00 each 11-03 sold 250 units$35.00 each 11-05 purch 500 units$23.00 each 11-10 sold 250 units $36.00 each 11-15 purch 450 units $26.00 each 11-19 purch 300 units $28.00 each 11-23 sold 200 units $37.00 each 11-29 purch 300 units@$30.00 each 12-01 begin with 1,350 units$36,000 12-04 sold 350 units $38.00 each 12-10 purch 500 units $29.00 each 12 13 sold 600 units @$40.00 each 12-18 purch 600 units@$31.00 each 12- 20 sold 600 units@$41.00 each 12-21 purch 400 units $30.00 each 12-24 sold 550 units@ $42.00 each During December, supplies purchased totaled $1,100. A physical count showed that there were $1,850 remaining at the end of the year. Prepare the necessary adjusting entry. It was discovered that the insurance policy was renewed on December 1st; coverage will cost $6,720 for the next 12 months. Prepare the necessary entries. Collected $18,500 in cash from previous sales on credit. Those customers received $350.00 in discounts. page 1 201 Project 1 v3.0 - student

Answer & Explanation Solved by verified expert

See Answer