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Compute the ending inventory using LIFO for both the periodic and the perpetual methods below: units price 1-Jan Beginning inventory 3,500 $3.00 14-Jan Bought 1,500 $3.15 5-Feb Sold 1,000

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Compute the ending inventory using LIFO for both the  periodic and the perpetual methods below:
 units  price 
1-JanBeginning inventory           3,500  $                     3.00
14-JanBought           1,500  $                     3.15
5-FebSold           1,000
22-FebBought           2,000  $                     3.20
7-MarSold           1,500
15-MarSold           2,000
5-AprBought           1,000  $                     3.25
10-AprSold               800
12-AprSold               800
22-AprSold               500
4-MaySold               600
10-MayBought           2,000  $                     3.30
25-MaySold               500
LIFO Periodic Inventory (scroll down to see Perpetual input area)
PurchasedSoldBalance
Dateunits cost  total units cost  total units cost  total 
1-Jan3500 $       3.00  $           10,500.00
LIFO Perpetual Inventory
PurchasedSoldBalance
Dateunits cost  total units cost  total units cost  total 
1-Jan3500 $       3.00  $           10,500.00
 
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Below you will see an unadjusted trial balance run at month end followed by information needed to make adjusting entries. Baltimore Glass Company Unadjusted Trial Balance January 31, 2017

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Below you will see an unadjusted trial balance run at month end followed by information needed to make adjusting entries.
Baltimore Glass Company
Unadjusted Trial Balance
January 31, 2017
Acct.
No.Account TitleDebitCredit
101Cash          34,512
110Accounts Receivable       182,610
120Merchandise Inventory       573,987
125Supplies on Hand            3,252
130Prepaid Insurance            6,000
131Prepaid Rent            7,500
150Equipment       270,000
160Accumulated Depreciation          90,000
202Accounts Payable       110,587
210Salaries Payable                   –  
215Interest Payable                   –  
220Current Portion of Long Term Debt          12,000
240Long Term Debt       120,000
301Capital Stock       220,000
302Retained Earnings, 12/31/16       211,144
401Sales       348,080
510Cost of Goods Sold                   –  
520Advertising Expense            1,000
530Sales Salaries Expense          18,600
531Sales Commission Expense                   –  
532Supplies Expense                   –  
540Office Salaries Expense          12,950
550Utilities Expense                   –  
555Insurance Expense                   –  
558Rent Expense                   –  
560Professional Fees Expense            1,400
570Depreciation Expense                   –  
580Interest Expense                   –  
    1,111,811     1,111,811
Adjusting items and notes:
1. The company uses a calendar year.
2. Insurance was prepaid at the beginning of the year by paying $6,000 for a 12 month policy.
3. It is estimated that supplies on hand equal $2,000 at month end.
4. The rent is prepaid quarterly and $7,500 covered the first quarter of 2017.
5. Equipment was all purchased at one time and has a life of 10 years with no salvage value.  The equipment was 40 months old at the end of October.
6. At month end sales commissions of $3,000 were earned but unpaid.  The company records sales commission liability as a salary liability.
7. The interest rate on long term debt is 6% per year.  Interest will actually be paid at the end of each calendar quarter. (don’t forget the current portion of debt)
8. It is estimated that electricity usage equaled $800 during January and the company expects to be billed in early February.  Bills for utilities are entered into accounts payable.
9. The inventory balance includes purchases made during January of $215,000.
10. The company has a long history of cost of goods sold and 70% is a reasonable estimate to use for monthly financial statements.
11. The company considers sales salaries, commissions, supplies, and advertising to be selling expense and all other expenses to be administrative.
Do the following requirements below.  Create proper headings for each statement.
1. Record adjusting journal entries from information above.  You will need to calculate cost of goods sold to adjust inventory.  Draw T-accounts on your draft to help figure this out.
2. Prepare an adjusted trial balance including the adjusting entries made
3. Prepare a multi-step income statement.  Consider depreciation to be a selling and administrative expense.  Include a detailed cost of goods sold section including purchases and goods available for sale.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries including an entry to adjust the inventory balance.  Prepare entries to income summary and retained earnings even though this is a month end only.
Account #Account Titledebitcredit
555Insurance expense            6,000
130Prepaid insurance            6,000
532Supplies expense            1,252
125Supplies on hand            1,252
No Entry
570Depreciation Expense       180,000
160Accumulated Depreciation       180,000
530Sales Salaries Expense          15,600
210Salaries payable          15,600
240Long Term Debt       127,200
580Interest Expense       127,200
Baltimore Glass Company
Adjusted Trial Balance
January 31, 2017
Acct.
No.Account TitleDebitCredit
101Cash
110Accounts Receivable
120Merchandise Inventory
125Supplies on Hand
130Prepaid Insurance
131Prepaid Rent
150Equipment
160Accumulated Depreciation
202Accounts Payable
210Salaries Payable
215Interest Payable
220Current Portion of Long Term Debt
240Long Term Debt
301Capital Stock
302Retained Earnings, 12/31/16
401Sales
510Cost of Goods Sold
520Advertising Expense
530Sales Salaries Expense
531Sales Commission Expense
532Supplies Expense
540Office Salaries Expense
550Utilities Expense
555Insurance Expense
558Rent Expense
560Professional Fees Expense
570Depreciation Expense
580Interest Expense
                   –                      –  
Baltimore Glass Company
Income Statement
For the Month Ended 1/31/2017
Baltimore Glass Company
Statement of Retained Earnings
For the Month Ended 1/31/2017
Baltimore Glass Company
Balance Sheet
January 31, 2017
Note on retained earnings – must be updated number from retained earnings statement
Closing Entries zero out income statement accounts for new year
 
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During FY 2016 Bravo Manufacturing had total manufacturing costs are $520,000. Their cost of goods manufactured for the year was $495,000.

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During FY 2016 Bravo Manufacturing had total manufacturing costs are $520,000.

Their cost of goods manufactured for the year was $495,000.  The January 1, 2017 balance of Work-in-Process Inventory is $60,000. Use this information to determine the dollar amount of the FY 2016 beginning Work-in-Process Inventory. (Round dollar values & enter as whole dollars only.)

 
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Bravo Company’s January 1, 2016 finished goods inventory was $100,000. The January 1, 2017 finished goods inventory is $60,000.

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Bravo Company’s January 1, 2016 finished goods inventory was

$100,000. The January 1, 2017 finished goods inventory is $60,000.  Cost of goods manufactured for the FY 2016 was $250,000. Use this information to determine the dollar amount of the FY 2016 cost of goods sold. (Round dollar values & enter as whole dollars only.)

 
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