ADM 2302 Lecture Notes - Lecture 1: Microsoft Excel

I want the question answered in the same format. fill in theboxes

for how it should be recorded each month.

what will be recorded in june

july

august

Exercise 5-13
Expense Recognition

Sun Microsystems uses the accrual basis of accounting andrecognizes revenue at the time it sells goods or renders services.It applies U.S. GAAP and reports in U.S. dollars. Indicate theamount of expenses (if any) the firm recognizes during the monthsof June, July, and August in each of the following hypotheticaltransactions. The firm does the following:

a. Pays $180,000 on July 1 for one year's renton a warehouse beginning on that date.

b. Receives a utility bill on July 2 totaling$4,560 for services received during June. It pays the utility billduring July.

c. Purchases office supplies on account costing$12,600 during July. It pays $5,500 for these purchases during Julyand the remainder during August. Office supplies on hand on July 1cost $2,400, on July 31 cost $9,200, and on August 31 cost$2,900.

d. Pays $7,200 on July 15 for property taxes onoffice facilities for the current calendar year.

e. Pays $2,000 on July 15 as a deposit on acustom-made delivery van that the manufacturer will deliver onSeptember 30.

f. Pays $4,500 on July 25 as an advance on theAugust salary of an employee.

g. Pays $6,600 on July 25 for advertisementsthat appeared in computer journals during June.

Rock Slide is a distributor that assembles power units. Using the material presented in Schedules A and Schedule B:

(1) Determine Rock Slide’s cost of goods sold and the ending inventory using the inventory costing methods of FIFO, LIFO, and Weighted Averages;

(2) Determine Rock Slide’s gross profit (margin) using the inventory costing methods of

FIFO, LIFO and Weighted Averages;

S c h e d u l e A A s s e m b l y o f P o w e r U n i t s Rock Slide

Schedule B

Sales of Power Units Rock Slide