Task 1: Create a balance sheet from a trial balance for a given scenario. Make sure you classify the accounts appropriately as current or non-current.
Task 2: Perform inventory valuations using LIFO, FIFO, and weighted average methods based on the following information. Explain the impact of each method on the cost of goods sold and ending inventory.
The company imports microwaves from a supplier in China for the US market. At the end of the first quarter, 100 microwaves are in stock. The company purchased a total of 400 microwaves during the quarter at various prices: January: 100 units @ $75
February: 250 units @ $83 March: 50 units @ $87 The Company had no inventory at the beginning of the quarter.
Task 3: If the company's goal is to maximize net income, which evaluation method will you use and why?
Create a Balance Sheet from the trial balance:

Transcribed Image Text:

Debits Credits Classification Cash Sales Cost of Goods Sold 300,000.00 Current asset (10,000,000.00) Income statement Income statement Income statement Income statement Income statement Income statement 7.000,000.00 Selling Expenses 500,000.00 (50,000.00) Other income Administrative expenses 350,000.00 Interest Expenses 12,500.00 300,000.00 2,000,000.00 an non-current asset Building Long Term bond payable Accrued Liabilities Accumulated non-current asset (550,000.00) non-current liability (50,000.00) current- liability Depreciation Buildings (250,000.00) non-current asset Accumulated Depreciation Buildings Equipment Receivables Allowance for doubtful (250,000.00) non-current asset 750,000.00 non-current asset 100,000.00 current asse accounts (7,500.00) current asse Accumulated depreciation equipment Common Stock Payables Inventories Prepaid Expenses Retained Earnings (125,000.00) non-current asset (200,000.00) equity (115,000.00) cuIrent Liability 200,000.00 current asse 50,000.00 current asse (215.000.00) equity 11,562,500.00 (11,562,500.00) Assets Equity and Liabilities Current Assets Current Liabilities Total Current Assets Total Current Liabilities Total long term Liabilities Total property plant and equipment Total Equity Total Assets Total Equity and liabilities Project Part 1 - Task 2: Purchases Cost per Unit Total Cost January February March Ending Inventory- Value of Ending Invenory of 100 Units Weighted AVG LIFOFIFO Cost of Goods Sold (300 Units Sold) Weighted AVG LIFOFIFO