Accounting Question

Assignment 4.

1. Grand Product borrowed $8 million cash on November 1, 20×1 from Metro Bank under a short–

term credit line.  Grand issued a 5-month, 10% promissory note with interest payable at maturity.  Metro’s fiscal period is the calendar year.

Required:

1)Prepare the journal entry on November 1, 20×1 for Metro Bank.

2) Prepare the appropriate adjusting entry on December 31, 20×1 for Metro Bank. Show calculations.

3) Prepare the journal entry on March 31, 20×2 (maturity) for Metro Bank. Show calculations.

2. On December 1, 20×1, Land Co. issued a $100,000, 5-month, note to Castle Bank.  Interest was discounted at issuance at an 8% discount rate.  Prepare journal entries for Castle Bank on:

1) December 1, 20×1

2) December 31, 20×1

3) May 1, 20×2 (maturity)

3. Metro Mart Co. sells one product.  Presented below is information for January 2024 for Metro.

Date                
1/1/24              Inventory        100 units at $7 each
1/11/24            Purchase          150 units at $6 each
1/13/24            Sales                120 units at $8.50 each
1/20/24            Purchase          150 units at $5 each
1/27/24            Sales                100 units at $9 each

Compute the following costs:

1) Cost of goods sold under weighted average cost (periodic).

2) Cost of ending inventory under FIFO (periodic).

3) Cost of goods sold under LIFO (periodic)

4) Cost of ending inventory under moving average (perpetual).

5) Cost of goods sold under FIFO (perpetual).

6) Cost of goods sold under LIFO (perpetual).

Assignment 4. Spring 2024
1. Grand Product borrowed $8 million cash on November 1, 20×1 from Metro Bank under a short-term credit line. Grand issued a 5-month, 10% promissory note with interest payable at maturity.
Metro’s fiscal period is the calendar year.
Required:
1) Prepare the journal entry on November 1, 20×1 for Metro Bank.
2) Prepare the appropriate adjusting entry on December 31, 20×1 for Metro Bank. Show calculations.
3) Prepare the journal entry on March 31, 20×2 (maturity) for Metro Bank. Show calculations.
2. On December 1, 20×1, Land Co. issued a $100,000, 5-month, note to Castle Bank. Interest
was discounted at issuance at an 8% discount rate. Prepare journal entries for Castle Bank on:
1) December 1, 20×1
2) December 31, 20×1
3) May 1, 20×2 (maturity)
3. Metro Mart Co. sells one product. Presented below is information for January 2024 for Metro.
Date
1/1/24
1/11/24
1/13/24
1/20/24
1/27/24
Inventory
Purchase
Sales
Purchase
Sales
100 units at $7 each
150 units at $6 each
120 units at $8.50 each
150 units at $5 each
100 units at $9 each
Compute the following costs:
1) Cost of goods sold under weighted average cost (periodic).
2) Cost of ending inventory under FIFO (periodic).
3) Cost of goods sold under LIFO (periodic)
4) Cost of ending inventory under moving average (perpetual).
5) Cost of goods sold under FIFO (perpetual).
6) Cost of goods sold under LIFO (perpetual).
*Show your computations. If not, no credit.
1.