The following information is available for the Johnson Corporation: Beginning inventory $ 25,000 Inventory purchases (on account) 155,000 Freight charges on purchases (paid in cash) 10,000 Inventory returned to suppliers (for credit) 12,000 Ending inventory 30,000 Sales (on account) 250,000 Cost of inventory sold 148,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Record merchandise purchased on account for $155,000. Record the payment of $10,000 in cash for freight charges. Record merchandise returned to supplier for credit of $12,000. Record sales on account of $250,000. Record cost of merchandise sold of $148,000. Record the end-of-period adjusting entry. Ending inventory is $30,000.
The following information is available for the Johnson Corporation: Beginning inventory $ 25,000 Inventory purchases (on account) 155,000 Freight charges on purchases (paid in cash) 10,000 Inventory returned to suppliers (for credit) 12,000 Ending inventory 30,000 Sales (on account) 250,000 Cost of inventory sold 148,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Record merchandise purchased on account for $155,000. Record the payment of $10,000 in cash for freight charges. Record merchandise returned to supplier for credit of $12,000. Record sales on account of $250,000. Record cost of merchandise sold of $148,000. Record the end-of-period adjusting entry. Ending inventory is $30,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is available for the Johnson Corporation:
| Beginning inventory | $ | 25,000 | |
| Inventory purchases (on account) | 155,000 | ||
| Freight charges on purchases (paid in cash) | 10,000 | ||
| Inventory returned to suppliers (for credit) | 12,000 | ||
| Ending inventory | 30,000 | ||
| Sales (on account) | 250,000 | ||
| Cost of inventory sold | 148,000 | ||
Required:
Applying both a perpetual and a periodic inventory system, prepare the
- Record merchandise purchased on account for $155,000.
- Record the payment of $10,000 in cash for freight charges.
- Record merchandise returned to supplier for credit of $12,000.
- Record sales on account of $250,000.
- Record cost of merchandise sold of $148,000.
- Record the end-of-period adjusting entry. Ending inventory is $30,000.
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