Adjusted trial balance problems solutions

EXAM #2 WEEK 5 (Chapters 4-7) Should be completed by Sunday at 11:59 p.m. ET. Question 1: From the adjusted trial balance for the Worker Products Company, prepare a multiple-step income statement in good form.(20 points) Worker Products Company Adjusted Trial Balance December 31 Cash Accounts receivable Merchandise inventory Office supplies Store equipment Accumulated Depreciation – store equipment Office equipment Accumulated Depreciation – office equipment Accounts payable Notes payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Depreciation expense – store equipment Depreciation expense – office equipment Office supplies expense Interest expense Totals Debit $ 9,400 25,000 36,000 900 75,000 Credit $ 22,000 60,000 15,000 42,000 10,000 40,000 70,700 48,000 325,000 6,000 16,500 195,000 32,500 11,000 7,500 1,300 600 $524,700 $524,700 Question 2: A company made the following merchandise purchases and sales during the month of May: May 1 purchased May 5 purchased May 10 sold May 20 purchased May 25 sold 380 270 400 300 400 units at units at units at units at units at $15 each $17 each $50 each $22 each $50 each There was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of the ending inventory? (10 points) Question 3: A company made the following merchandise purchases and sales during the month of May: May 1 purchased May 5 purchased May 10 sold May 20 purchased May 25 sold 380 270 400 300 400 units at units at units at units at units at $15 each $17 each $50 each $22 each $50 each There was no beginning inventory. If the company uses the LIFO periodic inventory method, what would be the cost of the ending inventory? (10 points) Question 4: A company made the following merchandise purchases and sales during the month of May: May 1 purchased May 5 purchased May 10 sold May 20 purchased May 25 sold 380 270 400 300 400 units at units at units at units at units at $15 each $17 each $50 each $22 each $50 each There was no beginning inventory. If the company uses the FIFO periodic inventory method, what would be the cost of the ending inventory? (10 points) Question 5: Brown Company's bank statement for September 30 showed a cash balance of $1,350. The company's Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30.  A customer's check for $100 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company's account a $25 processing fee.      The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement. A $15 debit memorandum for checks printed by the bank was included with the canceled checks. Outstanding checks amounted to $1,145. A customer's note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc. a) Prepare a bank reconciliation as of September 30 b) Prepare any necessary adjusting journal entries necessary as a result of the bank reconciliation. (20 points) Question 6: Prepare the adjusting journal entry to record the estimate for bad debts assuming: On December 31, of the current year, a company's unadjusted trial balance revealed the following: Accounts receivable of $185,600; Sales Revenue of $1,280,000; (75% were on credit) and Allowance for Doubtful Accounts of $1,600 (credit balance).