There are two homework problems this week.

There are two homework problems this week. The first is below and the second one is on the second tab at the bottom left of the screen
Below you will see an unadjusted trial balance run at year end followed by information needed to make adjusting entries.
Baltimore Glass Company
Trial Balance
December 31, 2015
Acct.
No.

Account Title
101 Cash
110 Accounts Receivable
120 Merchandise Inventory
125 Supplies on Hand
130 Prepaid Insurance
131 Prepaid Rent
150 Equipment
160 Accumulated Depreciation
202 Accounts Payable
210 Wages Payable
301 Capital Stock
302 Retained Earnings, January 1
401 Sales
405 Sales Returns and Allowances
410 Interest Income
500 Purchases
501 Purchases Discounts
502 Purchases Returns and Allowances
505 Freight In
520 Advertising Expense
530 Sales Salaries Expense
532 Supplies Expense
540 Office Salaries Expense
550 Utilities Expense
555 Insurance Expense
560 Professional Fees Expense
570 Depreciation Expense
580 Interest Expense

Debit
88,450
195,613
256,250
3,252
3,500
7,500
175,285

Credit

24,260
72,555
220,000
211,144
998,250
5,145
1,500
560,880
4,080
1,200
4,580
1,000
88,600
124,500
8,594
3,000
6,840
1,532,989

1,532,989

Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2015 rent
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet.
8. A physical count of inventory shows a value of $219,100. The periodic inventory method is used.
Do the following requirements below. Create proper headings for each statement.
1. Record adjusting journal entries from information above. It is possible that an item may not require an entry
2. Prepare an adjusted trial balance including the adjusting entries made
3. Prepare a classified income statement. Supplies is a sales expense. January 1 inventory was $219,115.
4. Prepare a statement of retained earnings
5. Prepare a classified balance sheet
6. Prepare closing journal entries
Account #

Account Title

debit

credit

Debit

Credit

`

Baltimore Glass Company
Trial Balance
42369
Acct.
No.

Account Title
101 Cash
110 Accounts Receivable

120
125
130
131
150
160
202
210
301
302
401
405
410
500
501
502
505
520
530
532
540
550
555
560
570
580

Merchandise Inventory
Supplies on Hand
Prepaid Insurance
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Wages Payable
Capital Stock
Retained Earnings, January 1
Sales
Sales Returns and Allowances
Interest Income
Purchases
Purchases Discounts
Purchases Returns and Allowances
Freight In
Advertising Expense
Sales Salaries Expense
Supplies Expense
Office Salaries Expense
Utilities Expense
Insurance Expense
Professional Fees Expense
Depreciation Expense
Interest Expense
0

0

Baltimore Glass Company
Income Statement
For the Year Ended 12/31/2015

Note on utilities, insurance, professional fees - I did not indicate where these expenses belonged so you may have put some in selling expense also.
Note on depreciation - I did note indicate where this went so some of it could have gone to selling expense or even to cost of goods sold
You would have needed more information to determine that
Note on interest - you could have combined as I did or shown them as separate items.

Baltimore Glass Company
Statement of Retained Earnings
For the Year Ended 12/31/2014

You could have skipped the line for dividends and had just three lines on the statement since it was zero.

Baltimore Glass Company

Balance Sheet
42369

Closing Entries zero out income statement accounts for new year

Compute the ending inventory using LFIO for both the periodic and the perpetual methods below:
units
1-Jan Beginning inventory
14-Jan Bought
5-Feb Sold
22-Feb Bought
7-Mar Sold
15-Mar Sold
5-Apr Bought
10-Apr Sold
12-Apr Sold
22-Apr Sold
4-May Sold
10-May Bought
25-May Sold

price
3,500 $
1,500 $
1,000
2,000 $
1,500
2,000
1,000 $
800
800
500
600
2,000 $
500

3.00
3.15
3.20

3.25

3.30

LIFO Periodic Inventory (scroll down to see Perpetual input area)
Purchased
Date
units
cost
total
1-Jan

units

cost

Sold
total

Balance
units
cost
total
3500 $
3.00 $

10,500.00

Balance
cost
total
3500 $
3.00 $

10,500.00

LIFO Perpetual Inventory
Date

units
1-Jan

Purchased
cost

total

units

cost

Sold
total

units