Professional Documents
Culture Documents
1 :
Using FIFO
Date
1/1
3/1
Purchased
Issued
35
15
5
6
175
90
10/1
35
10
15/1
15
105
20/1
20
160
25/1
28/1
5
15
15
10
Balance
5
6
6
7
8
175
60
30
105
120
90
31/1
5
3
8
9
40
27
35
35
15
5
5
5
6
6
175
175
90
30
5
15
5
15
20
6
7
6
7
8
30
105
30
105
160
40
5
10
7
8
9
9
40
90
63
Make Sure:
using Q = Q purchased Q issued = Q balance
= (35+15+15+20+10) (35+10+5+15+15+5+3) = 95-88=7
Using Values= V Purchased V issued = V balance
= (175+90+105+160+90) (175+60+30+105+120+40+21)= 620-557=63
Using LIFO
Date
1/1
3/1
Purchased
Issued
35
15
5
6
175
90
10/1
15
30
15/1
15
105
20/1
20
160
25/1
28/1
31/1
20
15
10
6
5
8
7
Balance
V
90
150
160
105
90
8
Make Sure:
using Q = Q purchased Q issued = Q balance
= (35+15+15+20+10) - (15+30+20+15+8)= 95-88=7
Using Values= V Purchased V issued = V balance
= (175+90+105+160+90) (90+150+160+105+72)= 620- 577=43
72
35
35
15
5
5
5
6
5
175
175
90
25
5
15
5
15
20
5
7
5
7
8
25
105
25
105
160
25
5
10
5
2
5
9
5
9
25
90
25
18
Using Average
Date
Purchased
Issued
1/1
3/1
35
15
5
6
175
90
10/1
15/1
15
105
20/1
20
160
25/1
28/1
10
Balance
5
5
6
5.3
5.3
7
5.3
7
8
7.2875
175
175
90
26.5
26.5
105
26.5
105
160
36.4375
7.2876
9
8.429
36.4375
90
59.003
45
5.3
238.5
35
7.2875
255.0625
35
35
15
5
5
15
5
15
20
5
67.432
5
10
7
90
31/1
8.429
Make Sure:
using Q = Q purchased Q issued = Q balance
= (35+15+15+20+10) (45+35+8)= 95-88=7
Average cost 1 = 175+90/35+15= $5.3
Average cost2 = 26.5+105+160/5+15+20= $7.2875
Average cost3 = 36.4375+90/5+10= $8.429
Ques. No.2 :
Phinox Company , Income Statement , End Of May,2014.
Item
LIFO
Part
Sales Revenues
(3000*70)
- COGS
25*120=3000
15*130=1950
30*150=4500
Gross Profit
-Expenses:
Rent
Selling Expenses
Adm. & Adv. Expenses
Salaries
Income Before
Tax
- Taxes
Net Income
FIFO
Total
210,000
(9450)
Part
25*180=4500
30*150=4500
15*130=1950
200550
2000
4000
15000
40000
(61000)
30%*139550
2000
4000
15000
40000
139550
(41865)
Average
Total
210,000
Part
70*146.8
(10950)
(10276)
199050
199724
(61000)
2000
4000
15000
40000
138050
30%*138050
97685
Average Cost= (25*120)+(15*130)+(30*150)+(25*180)/25+15+30+25=146.8
Total
210,000
(41415)
96635
(61000)
138724
30%*138724
(41617.2)
97106.8
Ques. No.3 :
1Date
Jan.1,2011
Jan.1,2011
Jan.1,2014
Item
DR.
105000
115000
Cash
A/R
Ms Capital
(Ms share in the new business)
Land
Cs Capital
(Cs share in the new business)
550000
Equipment
A/R
220000
120000
CR.
220000
550000
A.D.A
Hs Capital
(Cs share in the new business)
10000
330000
2a) $350000
Schedule Of Income Division
Item
Annual Salaries
M (20%*220000)
C (50%*550000)
H (30%*330000)
Total
44000
110000
66000
220000
Interest Rate
M (10%*44000)
C (10%*110000)
H (10%*66000)
4400
11000
6600
22000
End balances
48400
121000
72600
242000
21600
54000
32400
108000
75000
175000
105000
350000
b) $200000
Schedule Of Income Division
Item
Annual Salaries
M (20%*220000)
C (50%*550000)
H (30%*330000)
Total
44000
110000
66000
220000
Interest Rate
M (10%*44000)
C (10%*110000)
H (10%*66000)
4400
11000
6600
22000
48400
121000
72600
242000
(21000)
(12600)
(8400)
End balances
(42000)
40000
100000
60000
200000
Cash
Beg. Balances
Sale of Non-Cash
Assets &
Recognize
Gain/Loss
New Balances
Payment of
liabilities
New Balances
Cash Distribution
End Balances
480000
920000
Non-Cash
Assets
770000
(770000)
Liabilities
Ms Capital
Cs Capital
Hs Capital
150000
220000
550000
330000
30000
75000
45000
1400000
-0-
(150000)
1250000
150000
625000
375000
250000
625000
375000
(250000)
(625000)
(375000)
-0-
-0-
-0-
(150000)
-0-
-0-
(1250000)
-0-
250000
-0-
-0-
B-
Cash
Balances before liquidation
H payment
Capital
Capital
Capital
$
(17,000)
$
(15,000)
4,000
Balance
Date
$ 28,000
$ 32,000
No.
1
2
$
4,000
(4,000)
$
(17,000)
$
(15,000)
Item
Dr.
4000
Cash
Hs Capital
Ms Capital
Cs Capital
Cash
Cr.
4000
17000
15000
32000
Ques. No.4 :
1Date
No.
1
Item
Dr.
180000
Cash
Common stock (10000*10)
Paid-in capital In Excess Of Par
100000
80000
Cash
100000
Common Stock
4
5
Cr.
100000
Cash
80000
70000
10000
150000
150000
200000
150000
50000
150000
100000
50000
30000
30000
2No. Of Outstanding Common Stocks = Total No. Of Outstanding Shares Preferred Stocks
= 55000-5000=50000 Shares
share
Common Stock book value is $11/share which does not equal its market value/share & its par value/share.