XYZ uses the period method and had the following inventory events during January:DateUnits PurchasedUnit CostDateUnits SoldUnit Sales PriceJan. 1150$7.00Jan. 2100$10.00Jan. 52257.20Jan. 712510.00Jan. 101007.50Jan. 127512.00Jan. 151507.80Jan. 1720012.50Jan. 202007.95Jan. 2415015.00Jan. 251508.00Jan. 30758.20Note: January 1 amount was the beginning inventory and unit value.(Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.)Acct220 Page 2 of 9Required:a. Calculate cost of goods available for sale.b. Calculate the dollar value of sales.c. Calculate the value of Ending Inventory and Cost of Good Sold under the following independent assumptions:1) LIFO method2) FIFO method3) Average-cost methodQuestion 5:Acme Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA Social Security (6.2%), FICA Medicare (1.45%), state income tax (5%) and federal income tax (15%) withholdings. Additionally, all is subject to employer taxes to include FUTA (0.8%) and SUTA (5.4%) taxes. (Round all calculations to the nearest penny.)Required:a. Prepare the general journal entry to record the employer’s payroll liability.b. Prepare the general journal entry to record the employer’s payroll tax liability.c. Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on January 22.Question 3:Required: Prepare Acme’s Supply Co. general journal entries for the following transactions:Jan. 1Accepted RunTimeCo’s 120 days, 10% note, as settlement of an outstanding $15,000 account receivable for goods sold last yearJan. 15Purchased $10,000 Equipment from XYZ, signing a 9 month, 12% noteJan. 25Loaned Warner Co. $30,000 cash, accepting a 90 days, 10% noteJan. 31Prepared accrual adjusting entry for any interest revenueApr. 25Received payment in full from Warner Co. for outstanding note & interestMay 1Received payment in full from RunTimeCo for outstanding note & interestOct. 15Paid XYZ in fullQuestion 4:XYZ Company purchased a refrigerated delivery truck for $65,000 on April 1, 2016. The plan is to use the truck for 5 years and then replace it. At the end of its useful life the truck is expected to have a salvage value of $10,000.a. Prepare the depreciation table for XYZ’s truck assuming that the company uses the straight-line method for depreciation.b. Prepare the depreciation table for XYZ’s truck assuming that the company uses the double-declining-balance depreciation method.c. Compute the depreciation expense for 2016 for XYZ’s truck assuming the truck has an expected life of 200,000 miles and during 2016 the truck was driven 24,540 miles. Round your depreciation expense per mile to three decimal places.
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