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    The document provides a trial balance for a company as of December 31, 2018 listing various ledger accounts and their amounts. It asks to prepare a statement of profit and loss for the year ended December 31, 2018 and a balance sheet as of December 31, 2018 using the information provided in the adjusted trial balance. It also provides inventory purchase and sales transaction data for Taj Palace for calendar year 2018 and asks to compute cost of goods sold and gross profit using FIFO and compare cost of goods available using FIFO vs LIFO.

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    Imp Ques

    Uploaded by

    kaveri
    77 views2 pages
    The document provides a trial balance for a company as of December 31, 2018 listing various ledger accounts and their amounts. It asks to prepare a statement of profit and loss for the year ended December 31, 2018 and a balance sheet as of December 31, 2018 using the information provided in the adjusted trial balance. It also provides inventory purchase and sales transaction data for Taj Palace for calendar year 2018 and asks to compute cost of goods sold and gross profit using FIFO and compare cost of goods available using FIFO vs LIFO.

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    The document provides a trial balance for a company as of December 31, 2018 listing various ledger accounts and their amounts. It asks to prepare a statement of profit and loss for the year ended December 31, 2018 and a balance sheet as of December 31, 2018 using the information provided in the adjusted trial balance. It also provides inventory purchase and sales transaction data for Taj Palace for calendar year 2018 and asks to compute cost of goods sold and gross profit using FIFO and compare cost of goods available using FIFO vs LIFO.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    77 views2 pages

    Imp Ques

    Uploaded by

    kaveri
    The document provides a trial balance for a company as of December 31, 2018 listing various ledger accounts and their amounts. It asks to prepare a statement of profit and loss for the year ended December 31, 2018 and a balance sheet as of December 31, 2018 using the information provided in the adjusted trial balance. It also provides inventory purchase and sales transaction data for Taj Palace for calendar year 2018 and asks to compute cost of goods sold and gross profit using FIFO and compare cost of goods available using FIFO vs LIFO.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    You are on page 1of 2

    Financial Accounting DM 102 Improvement Test 9th September, 2019

    Duration: 60 Minutes Total Marks: 30

    Q1. The trial balance for a company as of December 31, 2018 is as follows:

    List of Ledgers (Trial Balance) Amount ($)


    Cash 58,000
    Accounts receivable 1,20,000
    Notes receivable (due in 90 days) 2,10,000
    Office supplies 22,000
    Trucks 1,34,000
    Accumulated depreciation – Trucks 58,000
    Equipment 2,70,000
    Accumulated depreciation Equipment 2,00,000
    Land 1,00,000
    Accounts payable. 1,34,000
    Interest payable 20,000
    Salaries payable 28,000
    Unearned delivery fees 1,20,000
    Long-term notes payable 2,00,000
    Common stock 15,000
    Retained earnings 1,10,000
    Dividends 50,000
    Delivery fees earned 6,11,800
    Interest earned 34,000
    Depreciation expense-trucks 29,000
    Depreciation expense-equipment 48,000
    Salaries expense 74,000
    Wages expense 3,00,000
    Interest expense 15,000
    Office supplies expense 31,000
    Advertising expense 27,200
    Repairs expense-trucks 35,600

    Required: Use the information in the adjusted trial balance to prepare

    (a) Statement of profit and loss the year ended December 31, 2018,

    (b) The Balance Sheet as of December 31, 2018.

    Page 1 of 2
    Taj Palace uses a Periodic inventory system. It entered into the following calendar year 2018 purchases and
    sales transactions. The company follows FIFO method.

    Date Activities Units Acquired at Cost Units Sold at Retail


    Jan. 1 Beginning inventory 600 units @ $45.00 per unit
    Feb. 10 Purchase 400 units @$42.00 per unit
    Mar. 13 Purchase 200 units @$24.00 per unit
    Mar. 15 Sales 800 units @$75.00per unit
    Aug. 21 Purchase 100 units@ $50.00 per unit
    Sept. 5 Purchase 500 units @ $46.00 per unit
    Sept. 10 Sales 600 units @$75.00 per unit
    Totals 1,800 units 1,400 units

    Required
    1. Compute the COGS and Gross profit by using FIFO
    2. Compute cost of goods available for sale using FIFO and compare it with that calculated using LIFO.

    Page 2 of 2

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