Question

Ref : Chapter
(a)
ROSE C
W
For the Year End

Adjusted Trial Balance

Account Titles
Dr.
101 Cash 8,100
112 Accounts Receivable 10,800
126 Supplies 1,500
130 Prepaid Insurance 2,000
151 Office Equipment 24,000
152 Accum Depreciation—Office Equipment
200 Notes Payable
201 Accounts Payable
212 Salaries Payable
230 Interest Payable
311 Common Stock
320 Retained Earnings
332 Dividends 7,000
400 Service Revenue
610 Advertising Expense 8,400
631 Supplies Expense 4,000
711 Depreciation Expense 5,600
722 Insurance Expense 3,500
726 Salaries Expense 31,000
905 Interest Expense 600
Totals
350 Net Income
Totals 106,500

(b)
ROSE COMPANY INC.
Income Statement
For the Month Ended December 31, 2017
Revenues
Service Revenue
Expense
Advertising Expense 8,400
Supplies Expense 4,000
Depreciation Expense 5,600
Insurance Expense 3,500
Salaries Expense 31,000
Interest Expense 600
 Total Expense
Net Income

ROSE COMPANY INC.

Retained Earning Statement
For the Month Ended December 31, 2017

Retained Earning, December 1 5,800

Add : Net Income 7,900
13,700
Less: Dividends 7,000
Retained Earning, December 31 6,700

ROSE COMPANY INC.

Balance Sheet
For the Month Ended December 31, 2017

Assets
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Office Equipment 24,000
Less: Accum Depreciation—Office Equipment 5,600
Total Assets

Liabilities and Stockholders' Equity

Liabilities
Notes Payable 6,000
Accounts Payable 15,100
Salaries Payable 2,400
Interest Payable 600
Total Liabilities
Stockholders' Equity
Common Stock 10,000
Retained Earnings 6,700
Total Stockholders' equity
Total Liabilities and Stokholders' equity

(c)
Date Account Titles and Explanation Debit
2,017 Closing Entries
Dec. 31 Service Revenue 61,000
Income Summary
(To close revenue account)
 31 Income Summary 53,100
Advertising Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Salaries Expense
Interest Expense
(To close expense account)

31 Retained Earnings 7,900

Income Summary
(To close retained earning)

31 Retained Earnings 7,000

Dividends
(To close dividends to retained earnings)

(d) Advertising Expense

8,400 8,400

Supplies Expense
4,000 4,000

Depreciation Expense
5,600 5,600

Insurance Expense
3,500 3,500

Salaries Expense
31,000 31,000

Interest Expense
600 600
(e)
Post - Closing Trial Balance
Account Titles
Dr.
101 Cash 8,100
112 Accounts Receivable 10,800
126 Supplies 1,500
130 Prepaid Insurance 2,000
151 Office Equipment 24,000
152 Accum Depreciation—Office Equipment
200 Notes Payable
201 Accounts Payable
212 Salaries Payable
230 Interest Payable
311 Common Stock
320 Retained Earnings
332 Dividends -
400 Service Revenue
610 Advertising Expense -
631 Supplies Expense -
711 Depreciation Expense -
722 Insurance Expense -
726 Salaries Expense -
905 Interest Expense -
350 Net Income
Totals 46,400
 Question 1
Ref : Chapter 1 -4

ROSE COMPANY INC.

Worksheet
For the Year Ended December 31, 2017

Adjusted Trial Balance Income Statement

Cr. Dr. Cr.

5,600
15,000
6,100
2,400
600
10,000
5,800

61,000 61,000
8,400
4,000
5,600
3,500
31,000
600
53,100 61,000
7,900
106,500 61,000 61,000

1, 2017

61,000
 53,100
7,900

1, 2017

1, 2017

8,100
10,800
1,500
2,000

18,400
40,800

uity

24,100

16,700
40,800

Credit

61,000
 8,400
4,000
5,600
3,500
31,000
600

7,900

7,000

Income Summary
53,100 61,000
7,900
61,000 61,000

Retained Earnings
7,000 -0-
7,900
900

Dividents
7,000 7,000
ost - Closing Trial Balance
Cr.

5,600
6,000
15,100
2,400
600
10,000
6,700

46,400
 Balance Sheet
Dr. Cr.
8,100
10,800
1,500
2,000
24,000
5,600
15,000
6,100
2,400
600
10,000
5,800
7,000

53,400 45,500
7,900
53,400 53,400
Service Revenue
61,000 61,000

61,000 61,000
 Question 2
Ref : Chapter 11

Beg
Number of shares 50,000
Par Value 4
Total Share Capital 200,000

1-Apr Issue Shares 9,000

15-Jun Dividends 1.50
1-Dec Issue Shares 4,000.00
15-Dec Dividends 1.60

(a)
Date Account Titles & Explanation Debit
1-Apr Cash 99,000
Common Stock (9,000 x $4)
Paid-in Capital in access of par value
15-Jun Cash Dividends 88,500
Dividends Payable
10-Jul Dividends Payable 88,500
Cash
1-Dec Cash 48,000
Common Stock (4,000 x $4)
Paid-in Capital in access of par value
15-Dec Cash Dividends 100,800
Dividends Payable
 Adj Adj
59,000 63,000.00

236,000 252,000

Credit

36,000
63,000

88,500

88,500

16,000
32,000

100,800
 Questi
Ref : Cha

Delivery Truck
A
B
C
For the delivery truck number C, the truck is expected to be driven 150,000 miles. Actual miles of use in the first 3 yea

(1) Date
1-Jul-12

1-Jan-13

1-Jan-13

(2) Depreciation expense for the year 2013

Truck A (Straight-Line Methods)
Cost of Vehicle
Less : Salvage Value
Depreciable cost
Divide : Life
Annual Depreciation

Depreciation expense for the year 2013

Truck B (Double Declining Balance)
Rate of Straight Line Method
Rate of Double-Declining Balance
Depreciation expense for the year 2013

Depreciation expense for the year 2013

Truck C (Straight-Line Methods)
Cost of Vehicle
Less : Salvage
Depreciable cost
Divide : Life
Depreciation per mile
Miles run in 2013
Depreciation expense for the year 2013

(3) Date
31-Dec-13

31-Dec-13

31-Dec-13
 Year
(4)
2013
2014
2015
2016
2017
 Question 3
Ref : Chapter 9

Acquired Cost
1-Jul-12 125,000
1-Jan-13 95,000
1-Jan-13 96,000
expected to be driven 150,000 miles. Actual miles of use in the first 3 years were: 2013: 2,800, 2014: 3,200; 2015: 3,300.

Accounts Title and Explanation Debit

Delivery Vehicle Equipment (Truck A) 125,000
Cash Account
Delivery Vehicle Equipment (Truck B) 95,000
Cash Account
Delivery Vehicle Equipment (Truck C) 96,000
Cash Account

Depreciation expense for the year 2013

Truck A (Straight-Line Methods)
125,000
10,000
115,000
10
11,500

Depreciation expense for the year 2013

Truck B (Double Declining Balance)
(100/5) 20%
(20 x 2) 40%
(95000 x 40%) 38,000

Depreciation expense for the year 2013

Truck C (Straight-Line Methods)
96,000
6,000
90,000
150,000
0.6
2,800
1,680.0

Accounts Title and Explanation Debit

Depreciation Expenses 11,500
Accumulated Depreciation - Delivery Equipment A
Depreciation Expenses 38,000
Accumulated Depreciation - Delivery Equipment B
Depreciation Expenses 1,680
Accumulated Depreciation - Delivery Equipment C

Book Value Beginning Depreciation Rate

95,000 40%
57,000 40%
34,200 40%
20,520 40%
12,312 40%
 Salvage Value
$ 10,000.00
$ 7,500.00
$ 6,000.00
: 2013: 2,800, 2014: 3,200; 2015: 3,300.
Useful Life (in years) Depreciation Method
10 Straight-line
5 Double declining-balance
5 Units -of-activity

Credit

125000

95,000

96,000

Miles
Per Miles

Credit

11,500

38,000
 1,680

Annual Depreciation Expense Accumulated Depreciation Book Value Ending

38,000 38,000 57,000
22,800 60,800 34,200
13,680 74,480 20,520
8,208 82,688 12,312
4,812 87,500 7,500
 Date Description Quantity
1-Jan Beginning inventory 60
5-Jan Purchase 110
8-Jan Sale 90
10-Jan Sales return 10
15-Jan Purchase 35
16-Jan Purchase return 10
20-Jan Sale 90
25-Jan Purchase 10
Totals 415

(a)
(1) LIFO (i,iii,iii)
Purchase
Date
Quantity Price
1-Jan
5-Jan 110 $ 14.00

8-Jan

10-Jan

15-Jan 35 $ 18.00

16-Jan (10) $ 18.00

20-Jan

25-Jan 10 $ 20.00

Total Purchase

Quantity Price
Total Sales 170 $ 25.00

Revenue $ 4,250.00
Cost Of Goods Sold $ 2,515.00
Gross Profit (iii) $ 1,735.00
(2) FIFO (i,iii,iii)
Purchase
Date
Quantity Price
1-Jan
5-Jan 110 $ 14.00

8-Jan

10-Jan
15-Jan 35 $ 18.00

16-Jan (10) $ 18.00

20-Jan

25-Jan 10 $ 20.00

Total Purchase

Quantity Price
Total Sales 170 $ 25.00

Revenue $ 4,250.00
Cost Of Goods Sold $ 2,440.00
Gross Profit (iii) $ 1,810.00

(3) Average (i,iii,iii)

Purchase
Date
Quantity Price
1-Jan
5-Jan 110 $ 14.00
8-Jan
10-Jan
15-Jan 35 $ 18.00
16-Jan (10) $ 18.00
20-Jan
25-Jan 10 $ 20.00
Total Purchase

Quantity Price
Total Sales 170 $ 25.00

Revenue $ 4,250.00
Cost Of Goods Sold $ 2,511.36
Gross Profit (iii) $ 1,738.64
 Question 4
Ref : Chapter 6

Unit cost or selling price Total Cost

$ 15.00 $ 900.00
$ 14.00
$ 25.00
$ 25.00
$ 18.00
$ 18.00
$ 25.00
$ 20.00

ase Cost Of Goods Sold

Total Quantity Price Total

1,540

90 $ 14.00 $ 1,260.00

(10) $ 14.00 $ (140.00)

630

(180)

25 $ 18.00 $ 450.00
30 $ 14.00 $ 420.00
35 $ 15.00 $ 525.00
200

$ 2,190.00 Total Cost of Goods Sold (i) $ 2,515.00

Total
$ 4,250.00
ase Cost Of Goods Sold
Total Quantity Price Total

1,540

60 $ 15.00 $ 900.00
30 $ 14.00 $ 420.00
(10) $ 14.00 $ (140.00)
630

(180)

90 $ 14.00 $ 1,260.00

200

$ 2,190.00 Total Cost of Goods Sold (i) $ 2,440.00

Total
$ 4,250.00

ase Cost Of Goods Sold

Total Quantity Price Total

1,540
90 $ 14.35 $ 1,291.76
(10) $ 14.35 $ (143.53)
630
(180)
90 $ 15.15 $ 1,363.12
200
$ 2,190.00 Total Cost of Goods Sold (i) $ 2,511.36

Total
$ 4,250.00
 Inventory Balance
Quantity Price Total
60 $ 15.00 $ 900.00
60 $ 15.00 $ 900.00
110 $ 14.00 $ 1,540.00
60 $ 15.00 $ 900.00
20 $ 14.00 $ 280.00
60 $ 15.00 $ 900.00
30 $ 14.00 $ 420.00
60 $ 15.00 $ 900.00
30 $ 14.00 $ 420.00
35 $ 18.00 $ 630.00
60 $ 15.00 $ 900.00
30 $ 14.00 $ 420.00
25 $ 18.00 $ 450.00
25 $ 15.00 $ 375.00
- $ 14.00 $ -
- $ 18.00 $ -
25 $ 15.00 $ 375.00
10 $ 20.00 $ 200.00
Total Ending Inventory (ii) $ 575.00
 Inventory Balance
Quantity Price Total
60 $ 15.00 $ 900.00
60 $ 15.00 $ 900.00
110 $ 14.00 $ 1,540.00
- $ 15.00 $ -
80 $ 14.00 $ 1,120.00
90 $ 14.00 $ 1,260.00
90 $ 14.00 $ 1,260.00
35 $ 18.00 $ 630.00
90 $ 14.00 $ 1,260.00
25 $ 18.00 $ 450.00
- $ 14.00 $ -
25 $ 18.00 $ 450.00
25 $ 18.00 $ 450.00
10 $ 20.00 $ 200.00
Total Ending Inventory (ii) $ 650.00

Inventory Balance
Quantity Price Total
60 $ 15.00 $ 900.00
170 $ 14.35 $ 2,440.00
80 $ 14.35 $ 1,148.24
90 $ 14.35 $ 1,291.76
125 $ 15.37 $ 1,921.76
115 $ 15.15 $ 1,741.76
25 $ 15.15 $ 378.64
35 $ 16.53 $ 578.64
Total Ending Inventory (ii) $ 578.64