Question

Cash Accounts Receivable Inventory Equipment Debit $4,500 4,800 2,400* 24,000 $35,700 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,100 3,200 31,400 $35,700 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,000 of the $0.60 units and 300 of the $0.74.) 7 Granted the December 5 customer $177 credit for 200 units of inventory returned costing $118. These units were returned to inven 17 Purchased 2,100 units of inventory for cash at $0.80 each. 22 Sold 3,200 units of inventory on account for $0.95 per unit. (Bonita sold 3,200 of the $0.74 units.) Adjustment data: 1. Accrued salaries payable $400. 2. Depreciation $360 per month. Your answer is correct. Journalize the December transactions and adjusting entries, assuming Bonita uses the perpetual inventory method. (Credit account titles not indent manually. Record journal entries in the order presented in the problem.) Debit Credit 2960 52960 VEL Date Account Titles and Explanation Dec. 3 inventory TAccounts Payable Dec. 5 Accounts Receivable Sales Revenue (To record sales revenue.) Dec. 5 Cost of Goods Sold 28705 2 Inventory 57 (To record cost of goods sold.) Dec. 7 Sales Returns and Allowances Accounts Receivable (To record sales returns.) Dec. inventory Cost of Goods Sold (To record cost of sales returns.) bec. 17 Inventory Cash bec. 22l Accounts Receivable Sales Revenue (To record sales revenue.) Dec. 22 Cost of Goods Sold 7040 5 362040 Inventory (To record cost of goods sold.) Dec. 31 Salaries and Wages Expense Salaries and Wages Payable (To record accrued expense.) c. 31 Depreciation Expense Accumulated Depreciation Equipment (To record depreciation expense.) Your answer is correct. Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entri 7680 Cash Pec. 1 Bal. 745007 Dec. 17 Dec. 31 Bal. 12824- Accounts Receivable Dec. 1 Bal. 44800 bec. 7 Dec. 5) 13874 04 bec. 31 Bal. 11153 Inventory Dec. 1 Bal. 12400 Dec. 5 Dec. 31 Dec. 22 SU T2960 Dec. 22 Dec. 7) 00 bec. 3 bec. 31 Dec. 171 11684 Dec. 31 Bal. 2164 Equipment Dec. 1 Bal. 24000 Dec. 31 Bal.724000 Accounts Payable Dec. 1 Bal. 12960 4 Dec. 31 Bal. 76160 Accumulated Depreciation-Equipment bec. 1 Bal. 41100 360 Dec. 31 Bal. 1460 Salaries and Wages Payable Dec. 31 4400 Dec. 31 Bal. 7400 Owner's Capital Dec. 1 Bal. 31400 Dec. 31 Bal. 31400 Sales Revenue 3870 Dec. 22 3040 Dec. 31 Bal. 6910 Salaries and Wages Expense Dec. 31 401 Dec. 31 Bal. 4400 Cost of Goods Sold Dec. 5 2622 Dec. 7 Dec. 22 2362- Dec. 31 Bal. 487, Sales Returns & Allowances Dec. 5 7262 bec.7 Dec. 31 Bal. 171 Depreciation Expense Dec. 31 Boy Dec. 31 Bal. 364 Your answer is correct. Prepare an adjusted trial balance as of December 31, 2020. BONITA COMPANY Adjusted Trial Balance December 31, 2020 Cash $12820 TAccounts Receivable T11533 23 Inventory Equipment TAccumulated Depreciation Equipment TAccounts Payable Salaries and Wages Payable TOwner's Capital Sales Revenue Sales Returns and Allowances 2 Cost of Goods Sold 487 IL 2400 Salaries and Wages Expense Depreciation Expense Totals Your answer is correct. Prepare an income statement for December 2020. BONITA COMPANY Income Statement For the Month Ended December 31, 2020 Sales Revenues $16910 ess. Sales Returns and Allowances 77 76733 Net Sales Cost of Goods Sold 74872 2 Gross Profit / (Loss) 1861 TOperating Expenses Salaries and Wages Expense Depreciation Expense TNet Income / (Loss) Your answer is correct. Prepare a classified balance sheet at December 31, 2020. (List Current Assets in order of liquidity.) BONITA COMPANY Balance Sheet December 31, 2020 Assets Current Assets I cash $12820 TAccounts Receivable 911533 Inventory 2168 Total Current Assets Property, plant and Equipment Equipment Less: Accumulated Depreciation-Equipment 74000 Total Assets Liabilities and Owner's Equity Current Liabilities 2 TAccounts Payable $16160 Salaries and Wages Payable 1400 Total Current Liabilities TOwner's Equity Owner's Capital Total Liabilities and Owner's Equity x Your answer is incorrect. Try again. (e) Compute ending inventory and cost of goods sold under FIFO, assuming Bonita Company uses the periodic inventory system. Ending Inventory 17300 Cost of Goods Sold 14872 Compute ending inventory and cost of goods sold under LIFO, assuming Bonita Company uses the periodic inventory system. Ending Inventory

Need help with e and f

Both are ending inventory and COGS

Answer 1

FIFO Method of Valuation of Inventory
In this Method of Valuation the Goods first bought are sold first and remaining are stock in hand
In the Given Case
Date	Particulars	Qyt	Rate	Value
01-Dec	Opening Stock	4000	0.6	2400
03-Dec	Purchase	4000	0.74	2960
05-Dec	Sale (COGS)	-4000	0.6	-2400
		-300	0.74	-222
07-Dec	Goods Returned	200	0.59	118
17-Dec	Purchase	2100	0.8	1680
22-Dec	Sale (COGS)	-3200	0.74	-2368
	Total	2800	0.774286	2168
			Avg Rate of stock in hand
Therefore Value of Stock in hand as on 31/12 as per FIFO Method is
Stock in Hand	2800 units	2168/-
Cost of Goods Sold	-7500	-4990
Less : Goods Returned	200	118
Net COGS	-7300	-4872
FIFO Method of Valuation of Inventory
In this Method of Valuation the Goods Sold are the one which has been bought recently and Old Stock continues
In the Given Case
Date	Particulars	Qyt	Rate	Value
01-Dec	Opening Stock	4000	0.6	2400
03-Dec	Purchase	4000	0.74	2960
05-Dec	Sale (COGS)	-4000	0.74	-2960
		-300	0.6	-180
07-Dec	Goods Returned	200	0.59	118
17-Dec	Purchase	2100	0.8	1680
22-Dec	Sale (COGS)	-2100	0.8	-1680
		-200	0.59	-118
		-900	0.6	-540
	Total	2800	0.6	1680
			Avg Rate of stock in hand
Therefore Value of Stock in hand as on 31/12 as per LIFO Method is
Stock in Hand	2800 units	1680/-
Cost of Goods Sold	-7500	-5478
Less : Goods Returned	200	118
Net COGS	-7300	-5360