Beginning balances of UPM Company’s accounts as of January 1, 2016 as given below:

	Beg Balance
Account Title	Debit	Credit
Cash	142300
Accounts Receivable	48500
Supplies	18000
Prepaid Insurance	0
Inventory	6000
Equipment	30000
Accumulated Depreciation-Equipment		16000
Accounts Payable		35000
Salary Payable		27,000
Unearned Sales Revenue		15000
Capital		151800
Withdrawals	0
Sales Revenue
Sales Returns& Allowances
Sales Discounts
Cost of Goods Sold
Insurance Expense
Depreciation Expense-Equipment
Supplies Expense
Salary Expense
Total	244800	244800

During January 2016, UPM Company completed the following transactions:

• Jan 2: Purchased 300 units of inventory for 13,500$ from Happy Company, on terms, 3/20, n/60.
• Jan 4: Purchased 150 units of inventory from Maids Company on account with terms 2/5, n/30. Total invoice includes $6,800 plus $250 freight charges.
• Jan 5: Paid total salary of the December 2015, 27,000$.
• Jan 10: Paid to Maids Company.
• Jan 11: Prepaid one-year insurance, $3,600.
• Jan 12: Sold 500 units of goods to Shine Company for $50,000 ($100 each) on account with terms 5/10, n/30.
• Jan 14: Received 50 units of goods back from Shine Company (Returned goods are from $47 of cost each).
• Jan 15: Received payment from Shine Company, settling the amount due in full.
• Jan 20: Sold 70 units on account, $7,000 ($100 each) for cash to Bridget Company, n/30.
• Jan 26: Owner withdrew cash of 5,000$
• Jan 27: Purchased supplies for cash of $3,000.

On January 31, 2016 UPM completed following adjusting entries:

• Expiration of prepaid insurance for one month
• Depreciation of equipment for the month, $2,500
• Supplies on hand, $6,000
• Unearned sales revenue earned is, $12,000.
• Accrued salary of the January 2016 is 27,000$ which will be paid on the 5^th of the next month.

Requirements:

1. Journalize and post the January transactions. (Open T-accounts for each of the accounts given in trial balance, do not forget to write beginning balances) 
2. Prepare FIFO schedule to calculate the Cost of Goods Sold (COGS) on Jan 12^th, and 20^th. (Beginning inventory as of January 1 include 150 units $40 each which totals $6,000 as given) 
3. Prepare unadjusted trial balance as of January 31, 2016. 
4. Journalize and post the adjusting entries. 
5. Prepare adjusted trial balance as of January 31, 2016. 

Answer rating: 100% (QA)

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