Instructions: Prepare in journal form, without explanations, the end of month adjusting entries & closing entries for Flip’s Copy Shop for the month of June.
Acct220a Page 1 of 9
Question 2: Suggested time 15 minutes: 15% points:
The following items were taken from the post adjusted trial balance of Flip Company. (All balances are normal.)
Mortgage payable $ 1,443 Accumulated depreciation 3,655
Prepaid expenses 880 Accounts payable 1,444
Equipment 11,000 Notes payable after 2015 1,200
Long-term investments 1,100 Flip’s capital 13,480
Short-term investments 3,690 Accounts receivable 1,696
Notes payable in 2014 1,000 Inventories 1,756
Instructions: Prepare a classified balance sheet in good form as of December 31, 2013.
Question 3: Suggested time 15 minutes: 15% points:
The following information is available for Flip Company:
Beginning inventory 600 units at $4
First purchase 900 units at $6
Second purchase 500 units at $7.20
Assume that Flip uses a periodic inventory system and that there are 700 units left at the end of the month.
Instructions: Compute the cost of ending inventory and Cost of Good Sold under the
(a) LIFO method.
(b) FIFO method.
(c) Average-cost method