1. January 1- You have a beginning balance in inventory of $20,000 (5 items). During the...

 

 

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1. January 1- You have a beginning balance in inventory of $20,000 (5 items). During the year you purchase an additional 5 items for $5,000 each with terms of 75% down and the rest due in 1 year. You sell 8 items during the year for $7,000 each. Customers paid you 50% at the time of purchase and the remaining balance will be paid next year. Using FIFO, prepare the journal entries and t-accounts related to these transactions. 2. January 1- You have a beginning balance in inventory of $100,000 (10 items). During the year you purchase an additional 5 items for $12,000 each with terms of 50% down and the balance due next year. You sell 13 items during the year for $20,000 each. Customers paid you 60% at the time of purchase and the remaining balance will be paid next year. Using FIFO, prepare the journal entries and t-accounts related to these transactions. DEPRECIATION: 1. January 1- Purchase equipment for $52,000. You can sell it for $2,000 at the end of its 5 year life. What is depreciation expense in year 1? Prepare the journal entry to record depreciation expense at the end of year 3. How much is in accumulated depreciation at the end of year 3. What are net fixed assets at the end of year 3? 2. January 1- Purchased a vehicle for $49,000. You can sell it for $4,000 at the end of its 9 year life. What is depreciation expense in year 1? Prepare the journal entry to record depreciation expenses at the end of year 3. How much is in accumulated depreciation at the end of year 3. What are net fixed assets at the end of year 3? 1. January 1- You have a beginning balance in inventory of $20,000 (5 items). During the year you purchase an additional 5 items for $5,000 each with terms of 75% down and the rest due in 1 year. You sell 8 items during the year for $7,000 each. Customers paid you 50% at the time of purchase and the remaining balance will be paid next year. Using FIFO, prepare the journal entries and t-accounts related to these transactions. 2. January 1- You have a beginning balance in inventory of $100,000 (10 items). During the year you purchase an additional 5 items for $12,000 each with terms of 50% down and the balance due next year. You sell 13 items during the year for $20,000 each. Customers paid you 60% at the time of purchase and the remaining balance will be paid next year. Using FIFO, prepare the journal entries and t-accounts related to these transactions. DEPRECIATION: 1. January 1- Purchase equipment for $52,000. You can sell it for $2,000 at the end of its 5 year life. What is depreciation expense in year 1? Prepare the journal entry to record depreciation expense at the end of year 3. How much is in accumulated depreciation at the end of year 3. What are net fixed assets at the end of year 3? 2. January 1- Purchased a vehicle for $49,000. You can sell it for $4,000 at the end of its 9 year life. What is depreciation expense in year 1? Prepare the journal entry to record depreciation expenses at the end of year 3. How much is in accumulated depreciation at the end of year 3. What are net fixed assets at the end of year 3?

Answer rating: 100% (QA)

Under FIFO metho... View the full answer