Q1) Pier 1 Imports operates almost 1,000 stores around the world. Assume you are dealing with a Pier 1 store in Dallas. Assume the store began with an inventory of 50 chairs that cost a total of $1,500. The store purchased and sold merchandise on account as follows: Purchase 1 60 chairs @ $35 Sale 1. @ $60 100 chairs Purchase 2 80 chairs @ $40 Sale 2. @ $70 Assume that Pier 1 uses the FIFO cost method. Cash payments on account totaled $5,100. Operating expenses were $2,400; the store paid two-thirds in cash and accrued the rest as Accounts Payable. Required 1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise. 2. Make journal entries to record the store's transactions. 70 chairs
Q1) Pier 1 Imports operates almost 1,000 stores around the world. Assume you are dealing with a Pier 1 store in Dallas. Assume the store began with an inventory of 50 chairs that cost a total of $1,500. The store purchased and sold merchandise on account as follows: Purchase 1 60 chairs @ $35 Sale 1. @ $60 100 chairs Purchase 2 80 chairs @ $40 Sale 2. @ $70 Assume that Pier 1 uses the FIFO cost method. Cash payments on account totaled $5,100. Operating expenses were $2,400; the store paid two-thirds in cash and accrued the rest as Accounts Payable. Required 1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise. 2. Make journal entries to record the store's transactions. 70 chairs
Chapter1: Financial Statements And Business Decisions
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![Q1) Pier 1 Imports operates almost 1,000 stores around the
world. Assume you are dealing with a Pier 1 store in Dallas.
Assume the store began with an inventory of 50 chairs that cost
a total of $1,500. The store purchased and sold merchandise on
account as
follows:
Purchase 1
60 chairs @
$35
Sale 1.
@ $60
100 chairs
Purchase 2 .
80 chairs @
$40
Sale 2.
@ $70
Assume that Pier 1 uses the FIFO cost method. Cash payments
on account totaled $5,100. Operating expenses were $2,400; the
store paid two-thirds in cash and accrued the rest as Accounts
Payable.
Required
1. Prepare a perpetual inventory record, at FIFO cost, for this
merchandise.
70 chairs
2. Make journal entries to record the store's transactions.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e5463a2-c8a7-43c6-8d0e-4cd1d5c02128%2F2831f456-e4a8-4fcf-af83-5936a99b50e5%2Fo3buhba_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q1) Pier 1 Imports operates almost 1,000 stores around the
world. Assume you are dealing with a Pier 1 store in Dallas.
Assume the store began with an inventory of 50 chairs that cost
a total of $1,500. The store purchased and sold merchandise on
account as
follows:
Purchase 1
60 chairs @
$35
Sale 1.
@ $60
100 chairs
Purchase 2 .
80 chairs @
$40
Sale 2.
@ $70
Assume that Pier 1 uses the FIFO cost method. Cash payments
on account totaled $5,100. Operating expenses were $2,400; the
store paid two-thirds in cash and accrued the rest as Accounts
Payable.
Required
1. Prepare a perpetual inventory record, at FIFO cost, for this
merchandise.
70 chairs
2. Make journal entries to record the store's transactions.
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