BUSFPX4060Assessment2-1

School: Capella University - Course: BUS 4060 - Subject: Accounting

FINANCIALACCOUNTINGP RINCIPLES Assessment 2: Adjusting Entries, Inventory, and Cost of Goods Sold Use this worksheet to complete the following two exercises for Assessment 2. Refer to the instructions in the course for submitting your assessment. Exercise 2-1 For this exercise, use the following fiscal year-end unadjusted trial balance for the Bigelow Company. Note:Rent and salary expenses are divided equally between general/administrative and selling activities. Bigelow uses a perpetual inventory system. BIGELOW COMPANY Unadjusted Trial Balance April 30, 2012 (Fiscal year-end) DebitCredit Cash................................................................$2,150 Merchandise inventory....................................12,100 Store supplies..................................................4,600 Prepaid insurance...........................................2,100 Store equipment..............................................42,350 Accumulated depreciation—Store equipment$12,000 Accounts payable............................................8,700 Common stock................................................4,500 Retained earnings...........................................25,400 Dividends.........................................................1,800 Sales................................................................108,500 Sales discounts...............................................950 Sales returns and allowances.........................1,750 Cost of goods sold..........................................36,300 Depreciation expense—Store equipment.......0 Salaries expense.............................................32,500 Insurance expense..........................................0 Rent expense..................................................13,800 Store supplies expense...................................0 Advertising expense........................................8,70_______ 1

BIGELOW COMPANY Unadjusted Trial Balance April 30, 2012 (Fiscal year-end) DebitCredit 0 Totals............................................................... $159,100$159,10 0