Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended December 31. FFL adjusts its records only at year-end. January 6 Purchased and received 60 nutritional bars for $114, n/45. January 8 FFL sold 70 nutritional bars to Big Jim for $364 cash, which includes $34 of sales tax. April 30 FFL received $56,000 from Commerce Bank after signing a 24-month, 3 percent, promissory note. August 31 FFL signed a 6-month contract to sublease a portion of its building. FFL also received a $15,000 check for six months' rent. December 30 FFL paid employees' net pay through December 31, using direct deposits totaling $2,680, for 250 total hours at a $14 hourly wage. The company had withheld FICA of $310, United Way contributions of $120, and income tax of $390. December 31 FFL adjusted the accounts at year-end, relating to (a) employer payroll taxes, including FICA and $130 of unemployment taxes, (b) interest, and (c) rent. Required: 1. Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 60 nutritional bars at a unit cost of $1.50 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO. 2. For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 60 nutritional bars at a unit cost of $1.50 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO. (Do not round intermediate calculations.) Cost of goods sold
Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended December 31. FFL adjusts its records only at year-end. January 6 Purchased and received 60 nutritional bars for $114, n/45. January 8 FFL sold 70 nutritional bars to Big Jim for $364 cash, which includes $34 of sales tax. April 30 FFL received $56,000 from Commerce Bank after signing a 24-month, 3 percent, promissory note. August 31 FFL signed a 6-month contract to sublease a portion of its building. FFL also received a $15,000 check for six months' rent. December 30 FFL paid employees' net pay through December 31, using direct deposits totaling $2,680, for 250 total hours at a $14 hourly wage. The company had withheld FICA of $310, United Way contributions of $120, and income tax of $390. December 31 FFL adjusted the accounts at year-end, relating to (a) employer payroll taxes, including FICA and $130 of unemployment taxes, (b) interest, and (c) rent. Required: 1. Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 60 nutritional bars at a unit cost of $1.50 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO. 2. For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 60 nutritional bars at a unit cost of $1.50 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO. (Do not round intermediate calculations.) Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended
December 31. FFL adjusts its records only at year-end.
January 6 Purchased and received 60 nutritional bars for $114, n/45.
January 8 FFL sold 70 nutritional bars to Big Jim for $364 cash, which includes $34 of sales tax.
April 30 FFL received $56,000 from Commerce Bank after signing a 24-month, 3 percent, promissory note.
August 31 FFL signed a 6-month contract to sublease a portion of its building. FFL also received a $15,000 check for
six months' rent.
December 30 FFL paid employees' net pay through December 31, using direct deposits totaling $2,680, for 250 total hours
at a $14 hourly wage. The company had withheld FICA of $310, United Way contributions of $120, and income
tax of $390.
December 31 FFL adjusted the accounts at year-end, relating to (a) employer payroll taxes, including FICA and $130 of
unemployment taxes, (b) interest, and (c) rent.
Required:
1. Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 60 nutritional bars at a unit cost of
$1.50 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO.
2. For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal
entries.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 60 nutritional bars at a unit
cost of $1.50 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs
using FIFO. (Do not round intermediate calculations.)
Cost of goods sold
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