
Concept explainers
Perpetual Inventory System:
Under Perpetual Inventory System, the value of the inventories is updated on each transaction of purchase or sale. In other words, the entity which uses perpetual inventory system keeps track of their inventories continuously on each purchase or sale of inventories.
To determine:
1. Open T-accounts for all the accounts listed on the
2. Prepare journal
3. Prepare a worksheet consisting of unadjusted trial balance, adjustments and adjusted trial balance for the month ended January 31, 2016.
4. Prepare the multi-step income statement and statement of owner’s equity for the month ended January 31, 2016. Also prepare the
5. Journalize and post the closing entries at January 31.

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Chapter 5 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
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