Comprehensive Problem, cont.
Requirements 2 and 5, cont.
Comprehensive Problem, cont.
Requirements 2 and 5, cont.
FLOOR LAMPS
Purchases Cost of Goods Sold Inventory on Hand
Date Quantity Unit
Cost
Total
Cost Quantity Unit
Cost Total Cost Quantity Unit
Cost Total Cost
Sep. 30 2,000 units × $26 = $52,000 $52,000
Oct. 1 2,500 units × $25 = $62,500 2,000 units × $26 = $52,000 $114,500
2,500 units × $25 = $62,500
28 1,500 units × $26 = $39,000 $39,000 500 units × $26 = $13,000 $75,500
2,500 units × $25 = $62,500
Nov. 5 5,000 units × $27 = $135,000 500 units × $26 = $13,000 $210,500
2,500 units × $25 = $62,500
Comprehensive Problem, cont.
Requirement 3
Date Accounts Debit Credit
Oct. 1 Merchandise Inventory 250,000
Accounts Payable 250,000
(5,000 × $9) + (7,500 × $19) + (2,500 × $25)
12 Accounts Receivable—Atlas 176,400
Sales Revenue 176,400
4,000 × $45 = $180,000; $180,000 − ($180,000 × 0.02)
Cost of Goods Sold* 73,000
Merchandise Inventory 73,000
Comprehensive Problem, cont.
Requirement 3, cont.
Date Accounts Debit Credit
Oct. 31 Utilities Expense—Selling 1,500
Utilities Expense—Administrative 1,000
Cash 2,500
* See Inventory Records
Comprehensive Problem, cont.
Requirement 3, cont.
Date Accounts Debit Credit
Nov. 18 Accounts Receivable—Go-Mart 217,800
Sales Revenue 217,800
(2,000 × $45) + (2,000 × $65) = $220,000;
$220,000 − ($220,000 × 0.01)
Cost of Goods Sold* 88,500
Merchandise Inventory 88,500
28 Cash 217,800
Accounts Receivable—Go-Mart 217,800
* See Inventory Records
Comprehensive Problem, cont.
Requirement 3, cont.
Date Accounts Debit Credit
Dec. 31 Salaries Expenses—Selling 30,000
Salaries Expense—Administrative 10,000
Cash 40,000
31 Utilities Expense—Selling 1,920
Utilities Expense—Administrative 1,280
Cash 3,200
Requirement 5
Date Accounts Debit Credit
Dec. 31 Adjusting Entries
a. Depreciation Expense—Selling 36,375
Depreciation Expense—Administrative 12,125
Accumulated Depreciation 48,500
Comprehensive Problem, cont.
Requirement 6
Davis Lamp Company
Adjusted Trial Balance
December 31, 2018
Balance
Account Debit Credit
Cash $ 395,130
Accounts Receivable 308,700
Merchandise Inventory 305,795
O!ce Supplies 200
Warehouse Supplies 650
Land 20,000
Building 780,000
O!ce Furniture and Equipment 125,000
Warehouse Fixtures 260,000
Accumulated Deprecia0on $ 242,500
Accounts Payable 0
Common Stock 100,000
Retained Earnings 298,925
Dividends 50,000
Comprehensive Problem, cont.
Requirement 7
Desk Lamps Table Lamps Floor Lamps
Number
of lamps
Dollar
Amount
Number
of lamps
Dollar
Amount
Number
of lamps
Dollar
Amount
Beginning Bal. 2,500 $ 20,000 3,000 $ 54,000 2,000 $ 52,000
Add: Purchases 10,000 95,000 17,500 352,500 7,500 197,500
Less: COGS 10,510 95,100 14,505 280,605 3,500 89,500
Ending Bal. 1,990 $ 19,900 5,995 $ 125,895 6,000 $ 160,000