PROBLEM 15A-2 (CONTINUED)
Inventory Item EL34
Date
201X
Received
Sold
Balance
Units
Total
Units
Cost
Total
Units
Cost
Total
Inventory Item 12AX7
Date
201X
Received
Sold
Balance
Units
Total
Units
Cost
Total
Units
Cost
Total
GENERAL LEDGER
CASH
ACCOUNT NO. 101
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
PROBLEM 15A-2 (CONTINUED)
MERCHANDISE INVENTORY
ACCOUNT NO. 114
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Nov.
1
Beginning Balance
–
5
4
3
00
10
GJ2
6
3
0
00
1
1
7
3
00
11
GJ2
4
0
00
1
1
3
3
00
13
GJ2
5
2
8
00
6
0
5
00
15
GJ2
1
0
0
00
7
0
5
00
16
GJ2
1
0
0
00
6
0
5
00
ACCOUNTS PAYABLE
ACCOUNT NO. 201
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Nov.
10
GJ2
6
3
0
00
6
3
0
16
GJ2
1
0
0
00
5
3
0
SALES
ACCOUNT NO. 401
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Nov.
11
GJ2
5
8
00
5
8
13
GJ2
7
7
6
00
8
3
4
PROBLEM 15A-2 (CONCLUDED)
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 402
Debit
Credit
Date
201X
Explanation
Post
Debit
Credit
Balance
COST OF GOODS SOLD
ACCOUNT NO. 501
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
GJ2
GJ2
GJ2
PROBLEM 15A-3
a. FIFO
Date
Received
Sold
Balance
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Jan.
1
806
12
00
$9,672
00
Mar.
8
508
00
6,096
298
12
00
3,576
00
Apr.
15
228
5
00
00
298
12
00
228
5
00
4,716
00
Oct.
5
298
00
3,576
5
00
170
5
00
00
Nov.
12
800
9
00
7,200
00
170
5
00
800
9
00
8,050
00
Nov.
30
170
5
00
228
9
00
572
9
00
5,148
00
Dec.
31
700
7
00
4,900
00
572
9
00
700
7
00
10,048
00
PROBLEM 15A-3 (CONTINUED)
b. LIFO
Date
Received
Sold
Balance
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Jan.
1
806
12
00
$9,672
00
Mar.
8
508
12
00
6,096
298
12
00
3,576
00
15
228
00
00
228
5
00
4,716
00
128
12
00
1,536
170
12
00
2,040
00
Nov.
12
800
00
7,200
00
170
12
00
800
9
00
9,240
00
PROBLEM 15A-4
(a) FIFO
(b) LIFO
(c) Weighted-Average
Cost of goods sold
PROBLEM 15A-5
Retail Method
Cost
Retail
Goods Available for Sale
Beginning Inventory
$16
3
0
0
00
$32
4
0
0
00
Net Purchases
1
0
0
00
195
1
0
0
00
Net Sales at Retail
186
0
0
0
00
PROBLEM 15A-6
Gross Profit Method
Gross Profit Method
Cost of Goods Available for Sale:
Inventory January 1, 201X
$38
7
0
0
00
Net Purchases
7
0
0
00
Net Sales
7
0
0
00
SOLUTIONS TO SET B PROBLEMS
PROBLEM 15B-1
GENERAL JOURNAL
PAGE 3
Date
201X
Account Titles and Description
PR
Dr.
Cr.
July
5
Merchandise Inventory
2
0
0
0
00
Accounts Payable
2
0
0
0
00
6
Accounts Receivable, Tommy Donaghey
7
0
00
Sales
7
0
00
6
Cost of Goods Sold
5
2
00
Merchandise Inventory
5
2
00
8
Accounts Payable
1
5
0
00
Merchandise Inventory
1
5
0
00
9
Cash
1
4
0
00
Sales
1
4
0
00
9
Cost of Goods Sold
9
3
00
Merchandise Inventory
9
3
00
9
Sales Returns and Allowances
9
00
Accounts Receivable, Tommy Donaghey
9
00
9
Merchandise Inventory
8
00
Cost of Goods Sold
8
00
10
Merchandise Inventory
1
0
0
0
00
Accounts Payable, RJ Supply
1
0
0
0
00
12
Cash
6
1
00
Accounts Receivable, Tommy Donaghey
6
1
00
13
Cash
3
6
0
00
Sales
3
6
0
00
13
Cost of Goods Sold
3
5
0
00
Merchandise Inventory
3
5
0
00
PROBLEM 15B-2
SALEM ELETRONICS
GENERAL JOURNAL
PAGE 2
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Nov.
10
Merchandise Inventory
114/√
7
0
2
00
7
0
2
11
Cash
1
8
9
00
Sales
401
1
8
9
00
11
Cost of Goods Sold
501
1
3
3
00
Merchandise Inventory
1
3
3
00
13
Cash
101
7
8
6
00
Sales
401
7
8
6
00
13
Cost of Goods Sold
501
4
5
8
00
Merchandise Inventory
4
5
8
00
15
Sales Returns and Allowances
402
1
0
8
00
Cash
101
1
0
8
00
Cost of Goods Sold
501
7
6
00
16
Accounts Payable
201
7
6
00
Merchandise Inventory
7
6
00
Inventory Item KT88
Date
Received
Sold
Balance
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
Nov. 1
7
19.00
$133.00
10
28
19.00
532.00
19.00
665.00
19.00
133.00
19.00
532.00
13
14
19.00
266.00
14
19.00
266.00
15
(4)
18
342.00
16
(4)
14
19.00
266.00
PROBLEM 15B-2 (CONTINUED)
Inventory Item EL34
Date
Received
Sold
Balance
Units
Total
Units
Cost
Total
Units
Cost
Total
Nov. 1
12.00
$264.00
12.00
12.00
132.00
Inventory Item 12AX7
Date
Received
Sold
Balance
Units
Total
Units
Cost
Total
Units
Cost
Total
Nov. 1
5
5.00
$25.00
5.00
195.00
5.00
27
5.00
GENERAL LEDGER
CASH
ACCOUNT NO. 101
Date
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Nov.
11
GJ2
1
8
9
00
1
8
9
00
13
GJ2
7
8
6
00
9
7
5
00
15
GJ2
1
0
8
00
8
6
7
00
MERCHANDISE INVENTORY
ACCOUNT NO. 114
Date
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Nov.
1
Beginning Balance
4
2
2
00
10
GJ2
7
0
2
00
1
1
2
4
00
11
GJ2
1
3
3
00
9
9
1
00
13
GJ2
4
5
8
00
5
3
3
00
15
GJ2
7
6
00
6
0
9
00
16
GJ2
7
6
00
5
3
3
00
PROBLEM 15B-2 (CONTINUED)
ACCOUNTS PAYABLE
ACCOUNT NO. 201
Date
Explanation
Post
Debit
Credit
Balance
Debit
Credit
GJ2
GJ2
SALES
ACCOUNT NO. 401
Date
Explanation
Post
Debit
Credit
Balance
Debit
Credit
GJ2
GJ2
PROBLEM 15B-2 (CONCLUDED)
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 402
Date
Explanation
Post
Debit
Credit
Balance
Debit
Credit
GJ2
COST OF GOODS SOLD
ACCOUNT NO. 501
Date
Explanation
Post
Debit
Credit
Balance
Debit
Credit
GJ2
GJ2
GJ2
PROBLEM 15B-3
a. FIFO
Date
201X
Received
Sold
Balance
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Jan.
1
804
9
00
$7,236
00
Mar.
8
494
9
00
$4,446
00
310
9
00
2,790
00
Apr.
15
218
12
00
$2,616
00
310
9
00
218
12
00
5,406
00
Oct.
5
310
9
00
2,790
00
12
00
00
180
12
00
2,160
00
Nov.
12
798
13
00
10,374
00
180
12
00
798
13
00
00
30
180
12
00
2,160
00
216
13
00
2,808
00
582
13
00
7,566
00
Dec.
31
704
8
00
00
582
13
00
704
8
00
00
b. LIFO
Date
201X
Received
Sold
Balance
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Jan.
1
804
9
00
$7,236
00
Mar.
8
494
9
00
$4,446
00
310
9
00
2,790
00
Apr.
15
218
12
00
$2,616
00
310
9
00
218
12
00
5,406
00
Oct.
5
218
12
00
2,616
00
130
9
00
1,170
00
180
9
00
1,620
00
Nov.
12
798
13
00
10,374
00
180
9
00
798
13
00
00
30
396
13
00
5,148
00
180
9
00
402
13
00
6,846
00
Dec.
31
704
8
00
00
9
00
402
13
00
704
8
00
12,478
00
PROBLEM 15B-4
(a) FIFO
(b) LIFO
(c) Weighted-Average
Less: Ending inventory
PROBLEM 15B-5
Cost
Retail
Goods Available for Sale:
Beginning Inventory
$16
5
0
0
00
$32
0
0
0
00
Net Purchases
9
0
0
00
5
0
0
00
Cost of Goods Available for Sale
Net Sales at Retail
188
0
0
0
00
Ending Inventory at Retail
Ending Inventory at Cost
PROBLEM 15B-6
Goods Available for Sale:
Inventory January 1, 201X
$39
1
0
0
00
Net Purchases
7
0
0
00
Less: Estimated Cost of Good Sold:
Net Sales
$125
3
0
0
Cost Percentage
Estimated Cost of Goods Sold
7
2
2
00
FINANCIAL REPORT PROBLEM SOLUTION—Reading Amazon’s Annual Report
KEEPING IT REAL: Suarez Computer Center Solution
SOLUTION FOR CONTINUING PROBLEM
Units Cost
Ending Inventory
FIFO
40
x
$3.00
=
$120
90
x
$4.50
=
405
110
x
$4.10
=
451
110
x
$3.10
=
341
LIFO
110
x
$2.50
=
$275
110
x
$3.00
=
330
90
x
$4.50
=
405
40
x
$4.10
=
164
Weighted
-average
$3.40
$1,190
Supporting
Calculations:
110
x
$2.50
=
$275
110
x
$3.00
=
330
x
=
110
x
$4.10
=
451
x
$3.10
=
341