Problems in Financial Accounting
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Please find 2 problems attached. It is very important that all compuations are shown, and would be preferable if they would be cost in excel.
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19. Problem 4
On December 31, 2003 the adjusted trial balance of Baden Personnel Agency shows the following selected data:
Commission Receivable, $12,000
Commission Revenue, $80,000
Interest Expense, $15,500
Interest Payable, $1,500
Utilities Expense, $4,500
Accounts Payable, $2,200
Analysis indicates that adjusting entries were made for (a) $12,000 of employment commission revenue earned but not billed, (b) $1,500 of accrued but unpaid interest, and (c) $2,200 of utilities expense accrued but not paid.
Instructions
(a) Prepare the closing entries at December 31, 2003.
(b) Prepare the reversing entries on January 1, 2004.
(c) Enter the adjusted trial balance data in T-accounts. Post the entries in (a) and (b) and rule and balance the accounts.
(d) Prepare the entries to record (1) the collection of the accrued commission on January 8, (2) payment of the utility bill on January 10, and (3) payment of all the interest due ($2,500) on January 15.
(e) Post the entries in (d) to the temporary accounts.
(f) What is the interest expense for the month of January 2004?
20. Problem 5
Carey Company sells many products. Gummo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gummo for the month of March. Carey Company uses the periodic inventory system.
Purchases Sales
Units Unit Cost Units Selling Price/Unit
3/1 Beginning inventory 100 $60
3/3 Purchase 60 $78
3/4 Sales 70 $120
3/10 Purchase 200 $82
3/16 Sales 80 $130
3/19 Sales 60 $130
3/25 Sales 50 $130
3/30 Purchase 40 $90
Instructions
(a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations)
(b) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations)
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Solution Summary
The solution has two problems
1. Baden Personnel - preparing adjusitng, closing and reversing journal entries
2. Carey Company - Inventory calculations using LIFO and FIFO methods
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