Question 1
The following is the Alpha Dog Company adjusted Trail Balance.
Alpha Dog Company
Adjusted Trial Balance
December 31, 2016
Account Title
Debit
Cash
$88,450
Accounts Receivable
181,860
Supplies
36,255
Stock Investment
130,500
Equipment
295,285
Accumulated Depreciation
Credit
$236,260
Accounts Payable
72,555
Wages Payable
10,000
Capital Stock
220,000
Retained Earnings
111,145
Service Revenue
898,105
Interest Income
1,500
Rent Expense
66,000
Wages Expense
537,260
Supplies Expense
42,520
Depreciation Expense
Dividends
Totals
164,595
6,840
________
$1,549,565
$1,549,565
Prepare only the Asset section of the Classified Balance Sheet for the year end. Be sure to
use a good format, dollar signs and single underlines were required. There are a few extra
lines in the formatted input answer form to allow for acceptable balance sheet format
variations.
Alpha Company
Income Statement (partial)
Question 2
The following is a partial Adjusted Trial Balance for Alpha Company for the month:
Alpha Company
Adjusted Trial Balance (partial)
January 31, 2016
Accounts
Inventory
Debit
Credit
$2,750
Sales
Sales Discounts
Sales Returns & Allowances
$10,000
200
1,200
Purchases
4,000
Purchases Discounts
150
Purchase Returns & Allowances
450
Freight In
50
Advertising Expense
150
Depreciation Expense
130
Freight Out
70
Income Tax Expense
500
Salaries Expense
500
Utilities Expense
100
Additionally, Inventory for December 31, 2015 was $2,500. Prepare a partial multiple-step
income statement that includes the Sales, Cost of Goods Sold sections & gross profit.
Alpha Company
Income Statement (partial)
Question 3
Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for
both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB Destination
will apply to all purchases & sales. The value of inventory is based on periodic system. On January 1, 2016,
beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthly income
statements. The following events occurred during the month of Jan.:
Date
Activity
a.
Jan. 3
Purchased on account 350 widgets for $11 each.
b.
Jan. 5
Sold on account 500 widgets for $30 each. Paid freight out with
petty cash of $150.
c.
Jan. 10
Purchased on account 650 widgets for $12 each.
d.
Jan. 11
Shipping cost for the January 10 purchased merchandise was $400
was paid with a cheque by Alpha directly to the freight company.
e.
Jan. 12
Returned 50 widgets received from Jan. 10 purchase as they were
not the correct item ordered.
f.
Jan. 13
Paid for the purchases made on Jan. 3.
g.
Jan. 21
Sold on account 550 widgets for $30 each. Paid freight out with
petty cash of $250.
h.
Jan. 22
Authorize credit without return of goods for 50 widgets sold on
Jan. 21 when customer advised that they were received in defective
condition.
i.
Jan. 25
Received payment for the sale made on Jan. 5.
j.
Jan. 26
Paid for the purchases made on Jan. 10.
k.
Jan. 31
Received payment for the sale made on Jan. 21.
Use this information to prepare the General Journal entries (without explanation) for the
January events. If no entry is required then enter the date and write "No Entry Required."
Date
a.
b.
c.
Accounts
Debit
Credit
d.
e.
f.
g.
h.
i.
j.
k.
Question 4
The following is the Bravo Unlimited adjusted Trail Balance.
Bravo Unlimited
Adjusted Trial Balance
December 31, 2016
Account Title
Debit
Credit
Cash
$88,450
Accounts Receivable
331,860
Supplies
Prepaid Rent
Equipment
Accumulated Depreciation
11,255
5,500
295,285
$236,260
Accounts Payable
72,555
Wages Payable
10,000
Capital Stock
220,000
Retained Earnings
111,145
Service Revenue
898,105
Interest Income
Rent Expense
1,500
66,000
Wages Expense
537,260
Supplies Expense
42,520
Depreciation Expense
Dividends
Totals
164,595
6,840
________
$1,549,565
$1,549,565
What are the dollar values that will appear in Bravo Unlimited year end financial
statements for the following line items: (For any Net Loss the dollar value must be enclosed
in brackets and do not use a minus sign.)
1. Total Current Assets
2. Total Quick Assets
3. Total Current Liabilities
4. Net Income or (Net Loss)
5. Retain Earnings
1.
2.
3.
4.
5.
Question 5
Alpha Company uses the periodic inventory system for purchase & sales of merchandise.
Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used.
Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of
inventory is based on periodic system. On January 1, 2016, beginning inventory consisted
of 325 units of widgets costing $10 each. Alpha prepares monthly income statements. The
following events occurred during the month of Jan.:
Date
Activity
a.
Jan. 3
Purchased on account 350 widgets for $11 each.
b.
Jan. 5
Sold on account 425 widgets for $30 each. Paid freight out with
petty cash of $150.
c.
Jan. 10
Purchased on account 600 widgets for $12 each.
d.
Jan. 11
Shipping cost for the January 10 purchased merchandise was $400
was paid with a cheque by Alpha directly to the freight company.
e.
Jan. 12
Returned 25 widgets received from Jan. 10 purchase as they were
not the correct item ordered.
f.
Jan. 13
Paid for the purchases made on Jan. 3.
g.
Jan. 21
Sold on account 550 widgets for $30 each. Paid freight out with
petty cash of $250.
h.
Jan. 22
Authorize credit without return of goods for 50 widgets sold on
Jan. 21 when customer advised that they were received in defective
condition.
i.
Jan. 25
Received payment for the sale made on Jan. 5.
j.
Jan. 26
Paid for the purchases made on Jan. 10.
k.
Jan. 31
Received payment for the sale made on Jan. 21.
Using the LIFO method, determine the dollar values following for the month of January:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
1.
2.
3.
Question 6
Alpha Company uses the periodic inventory system for purchase & sales of merchandise.
Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used.
Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of
inventory is based on periodic system. On January 1, 2016, beginning inventory consisted
of 350 units of widgets costing $10 each. Alpha prepares monthly income statements. The
following events occurred during the month of Jan.:
Date
Activity
a.
Jan. 3
Purchased on account 350 widgets for $11 each.
b.
Jan. 5
Sold on account 400 widgets for $30 each. Paid freight out with
petty cash of $150.
c.
Jan. 10
Purchased on account 625 widgets for $12 each.
d.
Jan. 11
Shipping cost for the January 10 purchased merchandise was $400
was paid with a cheque by Alpha directly to the freight company.
e.
Jan. 12
Returned 50 widgets received from Jan. 10 purchase as they were
not the correct item ordered.
f.
Jan. 13
Paid for the purchases made on Jan. 3.
g.
Jan. 21
Sold on account 550 widgets for $30 each. Paid freight out with
petty cash of $250.
h.
Jan. 22
Authorize credit without return of goods for 50 widgets sold on
Jan. 21 when customer advised that they were received in defective
condition.
i.
Jan. 25
Received payment for the sale made on Jan. 5.
j.
Jan. 26
Paid for the purchases made on Jan. 10.
k.
Jan. 31
Received payment for the sale made on Jan. 21.
Using the FIFO method, determine the dollar values following for the month of January:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
1.
2.
3.
Question 7
Alpha Company uses the periodic inventory system for purchase & sales of merchandise.
Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used.
Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of
inventory is based on periodic system. On January 1, 2016, beginning inventory consisted
of 325 units of widgets costing $10 each. Alpha prepares monthly income statements. The
following events occurred during the month of Jan.:
Date
Activity
a.
Jan. 3
Purchased on account 350 widgets for $11 each.
b.
Jan. 5
Sold on account 425 widgets for $30 each. Paid freight out with
petty cash of $150.
c.
Jan. 10
Purchased on account 600 widgets for $12 each.
d.
Jan. 11
Shipping cost for the January 10 purchased merchandise was $400
was paid with a cheque by Alpha directly to the freight company.
e.
Jan. 12
Returned 25 widgets received from Jan. 10 purchase as they were
not the correct item ordered.
f.
Jan. 13
Paid for the purchases made on Jan. 3.
g.
Jan. 21
Sold on account 550 widgets for $30 each. Paid freight out with
petty cash of $250.
h.
Jan. 22
Authorize credit without return of goods for 50 widgets sold on
Jan. 21 when customer advised that they were received in defective
condition.
i.
Jan. 25
Received payment for the sale made on Jan. 5.
j.
Jan. 26
Paid for the purchases made on Jan. 10.
k.
Jan. 31
Received payment for the sale made on Jan. 21.
Using the Weighted Average method, determine the dollar values following for the month of
January: (Enter only whole dollar values.)
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
1.
2.
3.
