BookCalculatorurnal Entries Using the Periodic Inventory Systemhe following selected transactions were completed by Air Systems Company during January of the current year. Air Systems CoJan. 2. Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30.5. Paid freight of $190 on the January 2 purchase.6. Returned $2,750 of the merchandise purchased on January 2.13. Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of merchandise sold was $22,400.15. Paid freight of $215 for the merchandise sold on January 13.discount.17. Paid for the purchase of January 2 less the returm and23. Received payment on account for the sale of January 13 less the discount.Journalize the entries to record the transactions of Air Systems Company.For a compound transaction, if an amount box does not require an entry, leave it blank.Jan. 2Aseseuoend17.836 XAccounts Payable190Freight InJan. 5190Cash2,750Accounts Payable /Jan. 62,750Purchases Returns and AllowancesCheck My WorkAll work saved.eonouat

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $96 Mar. 10 Purchase 70 units @ $106 Aug. 30 Purchase 30 units @ $110 Dec. 12 Purchase 60 units @ $114 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-in, first-out (FIFO) $ $ Last-in, first-out (LIFO) Weighted average cost
Retail Inventory Method The following information is provided by Raynette's Pharmacy for the last quarter of its fiscal year ending on March 31, 20--: Cost Retall Inventory, start of period, January 1, 20-- $31,900 $53,500 Net purchases during the period 169,511 266,200 Net sales for the period 258,500 Required: 1. Estimate the ending inventory as of March 31 using the retail inventory method. 2. Estimate the cost of goods sold for the time period January 1 through March 31 using the retail inventory method. 5 Check My Work 3 more Check My Work uses remaining.
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year: July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice. 5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the goods sold was $25,000. 7. Returned $6,850 of merchandise purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $108,000. The cost of the goods sold was $64,800. 22. Sold merchandise on account to…
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The following units of a particular item were availlable for sale during the calendar year: Jan. 1 Inventory 4,100 units at $39 Apr. 19 Sale 2,300 units June 30 Purchase 4,500 units at $43 Sept. 2 Sale 5,200 units Nav. 15 Purchase 2,100 units at $46 The firm maintains a perpetual inventory system. Determine the cost of goods ssold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method Cost of Goods Sold Inventory Purchases Quantity Total Cos Quantity Unit Cost Total Cost Unit Cost Unit Cost Total Cost Quantity Date Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Balances
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Instructions Chart of Accounts General Journal (X) 1a. Prepare the journal entries to record the purchase of inventory on May 18, the partial payment on account on May 28, and the Nelson Company bought inventory for $44,000 on terms of 2/15, n/60. It pays for the first $33,000 of inventory payment of the balance on July 17. Assume that Nelson uses the gross price method and a periodic inventory system. CHART OF ACCOUNTS purchased within the discount period and pays for the remaining $11,000 two months later. Nelson Company 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) General Journal Instructions General Ledger net price methods. Assume that Nelson uses the periodic inventory system. 2. Next Level Which of the two methods yields a conceptually preferable valuation of inventory? ASSETS REVENUE PAGE 1 111 Cash 411 Sales Revenue GENERAL JOURNAL 121 Accounts DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Receivable EXPENSES 131…
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Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr.2. Swan Company sold merchandise on account to Bird Company, $18,400, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $305, which was added to the invoice. The cost of the merchandise sold was $11,600. 8. Swan Company sold merchandise on account to Bird Company, $29,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $17,400. 8. Swan Company paid freight of $760 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on…
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units @ $90 Mar. 10 Purchase 60 units @ $100 Aug. 30 Purchase 20 units @ $108 Dec. 12 Purchase 70 units @ $110 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-in, first-out (FIFO) $fill in the blank 1 $fill in the blank 2 Last-in, first-out (LIFO) fill in the blank 3 fill in the blank 4 Weighted average cost fill in the blank 5 fill in the blank 6

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