一、Calculation
The Audiophile sells high-performance stereo equipment. Massachusetts Acoustic recently introduced the Carnegie-440, a state-of-the-art speaker system. During the current year, The Audiophile purchased nine of these speaker systems at the following dates and acquisition costs:
Date Units Purchased Unit Cost Total Cost
Oct.1 2 $3 000 $6 000
Nov.17 3 3 200 9 600
Dec.1 4 3 250 13 000
Available for sale 9 $28 600
On November 21, The Audiophile sold four of these speaker systems to the Boston Symphony. The other five Carnegie-440s remained in inventory at December 31.
Instructions
Assume that The Audiophile uses a perpetual inventory system. Compute
(1) The cost of goods sold relating to the sale of Carnegie-440 speakers to the Boston Symphony and (2) the ending inventory of these speakers at December 31, using each of the following flow assumptions:
a. Average cost b. FIFO c. LIFO
二、Make journal entries for the following transactions
1. BG bought supplies for $5 000, paid cash $1 000 and the rest to be paid in a month.
2. BG bought equipment from Mac company on account $2 000.
3. The company paid a $1 800 premium on June 1 for one year’s insurance in advance. The company prepares income statement at the end of June.
4. The company adopts a policy of estimating uncollectible accounts as a percentage of net sales. Assume that for several years the expense of uncollectible accounts has averaged 1% of net sales. At the end of the current year, the net sales amount to $2 000 000. Present the journal entry to record the estimated uncollectible accounts expense.
5. The company acquired a delivery truck for $90 000 at the beginning of 2010. The estimated useful life is four years (the salvage value is ignored). The company uses the straight-line method in computing its annual depreciation. Show the journal entry the company is supposed to do at the end of 2010.
6. BG sells satellite tracking systems for receiving television broadcasts from communications satellites in space. At December 31, 2010, BG’s inventory amounted to $50 000. During the first week in January 2011, BG made only one purchase and one sale. These transactions were as follows:
Jan. 2 Sold a tracking system to MW for $25 000 cash. The system consisted of seven different devices, which had a total cost to STARLIGHT of $12 800.
Jan. 6 Purchased three Model 500 and five Model 900 satellite dishes from BN Corp. The total cost of this purchase amounted to $10 000, terms 2/10, n/30.
BG records purchases of merchandise at net cost.
Instructions
Prepare journal entries to record theses transactions, assuming that BG uses a perpetual inventory system.