# preparing a trial balance spreadsheet with the given financial statement 2710741

MBA 5850 Spring 2018 Block 2 Case Study #2

WHD Goods, Inc. has prepared the following financial statements:

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MBA 5850 Spring 2018 Block 2 Case Study #2 WHD Goods, Inc. has prepared the following financial statements:WHD Goods, Inc. has hired you to review the financial statements and make any necessary corrections/adjustments before the financial statements are presented to the board of directors. ThePresident of the Company, Ms. Thimble has provided the following information to help you adjust the financial statements. (1) Inventory is costed using the first-in first out method. Inventory at December 31, 2015 was comprised of: 3,000 units at \$12.75 per unit. 2016 purchases included: 2/4/2016: 600 units @ \$12.50 per unit 4/8/16: 400 units @\$13.00 per unit 6/20/16: 800 units @ \$12.25 per unit 9/6/16: 500 units @ \$12.75 per unit 11/22/16: 700 units @ \$12.25 per unit 5,180 units were sold in 2016. (2) Equipment includes two assets. a. Asset #1 was purchased on June 1, 2016 for a cost of \$20,000. This asset has a salvage value of \$2,000 and an expected useful life of 5 years. The asset is depreciated using the straight-line method. b. Asset #2 was purchased on December 1, 2016 for a cost of \$54,000. This asset has no salvage value and an expected useful life of 3 years. The asset is depreciated using the straight-line method. (3) Accounts receivable detail is as follows: The allowance for doubtful accounts is based on the aging of accounts receivable method. The estimated percentage of uncollectible amounts is as follows: Current amounts (not yet due) = 1% 1 – 30 days past due = 2% 31 – 60 days past due = 3% Over 60 days past due = 5%

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