Questions

1. Jones Company is a merchandise company that uses the perpetualinventory method.  The business prepares financialstatements on a monthly basis and has the following adjusted trialbalance at January 31:

8,000       Cash                                        10,000       Notespayable (all long-term)

11,000     Accountsreceivable                   42,600       Owner’scapital, January 1

22,500     Merchandiseinventory                4,000        Owner’swithdrawals

34,200     Equipment                                314,700    Salesrevenue

7,400       Accumulateddepreciation            230,400     Costof goods sold

5,800       Accountspayable                       71,400      Operatingexpenses

1,000       Wages payable

1. Prepare a MUTLIPLE STEP income statement for Jones Company INGOOD FORMAT for January.

2. Prepare a statement of owner’s equity for Jones Company IN GOODFORMAT for January.

C. Prepare a classified balance sheetfor Jones Company IN GOOD FORMAT for January.

2. A business that uses the perpetual inventory method has thefollowing financial data regarding its merchandise inventory forJanuary:

      Beginninginventory                    20units at $5.00 each       

      January1:  Purchase                    50units at $5.50 each

      January5:  Purchase                    60units at $6.00 each

      Endinginventory                         35units

All January sales occurred afterJanuary 5.

1. Determine COST OF GOODS SOLD for January under FIFO.
2. Determine COST OF GOODS SOLD for January under LIFO.