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September-3; Merchandise purchased on account from Saad Tk.1,200, terms 2/15, N/30.
September-9; Merchandise sold on account Tk.800. Terms 1/10, N/30. The cost of the sold
merchandise was Tk.650.
September-19; Credit received from supplier Tk.200 for merchandise returned which was
purchased on September 15.
September-21; Merchandise sold in account Tk.1400. Terms N/30. The cost of the sold
merchandise was Tk.1180.
Required:
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Purchases:
March 10 500 units @ Tk.4.50 2,250
March 20 400 units @ Tk.4.75 1,900
March 30 300 units @ Tk.5.00 1,500 Sales:
March 15 500 units
March 25 400 units
The physical inventory count on March 31 shows 500 units on hand.
Instructions:
Under a periodic inventory system, determine the cost of inventory on hand at March 31 and the
cost of goods sold for March under (a) FIFO, (b) LIFO, and (c) Average-cost.
Question: 3
Prepare Bank reconciliation report and journalize the necessary adjustments as of March 31st,
2021 for Company “A”; its bank statement for March shows the following data:
The cash balance per books at March 31st is $16,319. Other relevant data are given below:
Question: 4
The December 31, 2020 balance of Mohammad Com had Accounts Receivable of $400,000
and a credit balance in Allowance for Doubtful Accounts of $32,000.
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During 2021, the following transactions occurred:
(a) sales on account $1,500,000;
(b) sales return and allowances $50,000
(C) collection from customers $1,250,000;
(d) accounts written off $36,000;
(e) previously written off accounts of $6,000 were collected.
Instructions:
(1) Journalize the 2021 transaction
(2) If the company uses percentage --of-sales basis to estimate bad debt expense and
anticipates 3% of net sales to be uncollectable, what is the adjusting entry at December 31,
2021.
Question: 5
On June 1, 2021, Tesla company purchased a machine for use in its production process.
Information concerning the machine is summarized as follows. Tesla’s reporting period is from
January 1 to December 31.
Required
a) Prepare depreciation schedule under the declining balance method. The company
uses the double declining rate.
b) Straight-line method
i. Calculate the amount of accumulated depreciation at December 31, 2022.
ii. Suppose the machine was sold for $150,000 on January 01, 2023. Prepare the
journal entry for the sale of the machine.
iii. In 2023, the company determined that the total estimated life should be 8 years with
a salvage value of $10,000. Calculate the depreciation expense for 2023.
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