Required information Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were 2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060. Problem 8-1 (Static) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No 1 Date October 12 General Journal Inventory Accounts payable 2 October 12 Interest payable Cash 38 Debit Credit 21,560 21,560 500 500 3 October 31 Accounts payable 21,560 Interest expense Cash × 440 22,000 4 October 31 Accounts receivable 28,000 Sales revenue 28,000 6 October 31 Inventory × 19,060X Cost of goods sold × 18,000X Inventory × 15,000X Purchases Freight-in 21,560X 500X
Required information Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were 2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060. Problem 8-1 (Static) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No 1 Date October 12 General Journal Inventory Accounts payable 2 October 12 Interest payable Cash 38 Debit Credit 21,560 21,560 500 500 3 October 31 Accounts payable 21,560 Interest expense Cash × 440 22,000 4 October 31 Accounts receivable 28,000 Sales revenue 28,000 6 October 31 Inventory × 19,060X Cost of goods sold × 18,000X Inventory × 15,000X Purchases Freight-in 21,560X 500X
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 15P: (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and...
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Required information
Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3]
[The following information applies to the questions displayed below.]
Autumn Company began the month of October with inventory of $15,000. The following inventory
transactions occurred during the month:
a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were
2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b.
shipping point and freight charges of $500 were paid in cash.
b. On October 31, Autumn paid for the inventory purchased on October 12.
c. During October inventory costing $18,000 was sold on account for $28,000.
d. It was determined that inventory on hand at the end of October cost $19,060.
Problem 8-1 (Static) Part 1
Required:
1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Answer is not complete.
No
1
Date
General Journal
October 12 Inventory
Accounts payable
3
Debit
21,560
Credit
21,560
2
October 12 Interest payable
500
Cash
500
3
October 31
Accounts payable
Interest expense
Cash
4
October 31
Accounts receivable
Sales revenue
3
33 383
21,560
440
22,000
28,000
28,000
6
October 31
Inventory
Cost of goods sold
X 19,060X
18,000X
Inventory
15,000X
Purchases
×
21,560X
Freight-in
×
500X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20087276-31e1-45a0-993b-ac8ed5334c3b%2Fa4c7f6fc-fbc6-462d-9110-9d516c704d87%2Fu4bl58a_processed.png&w=3840&q=75)
Transcribed Image Text:2
Required information
Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3]
[The following information applies to the questions displayed below.]
Autumn Company began the month of October with inventory of $15,000. The following inventory
transactions occurred during the month:
a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were
2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b.
shipping point and freight charges of $500 were paid in cash.
b. On October 31, Autumn paid for the inventory purchased on October 12.
c. During October inventory costing $18,000 was sold on account for $28,000.
d. It was determined that inventory on hand at the end of October cost $19,060.
Problem 8-1 (Static) Part 1
Required:
1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Answer is not complete.
No
1
Date
General Journal
October 12 Inventory
Accounts payable
3
Debit
21,560
Credit
21,560
2
October 12 Interest payable
500
Cash
500
3
October 31
Accounts payable
Interest expense
Cash
4
October 31
Accounts receivable
Sales revenue
3
33 383
21,560
440
22,000
28,000
28,000
6
October 31
Inventory
Cost of goods sold
X 19,060X
18,000X
Inventory
15,000X
Purchases
×
21,560X
Freight-in
×
500X
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