Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Journal entries : Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements. Accounting rules for journal entries : a) To Increase balance of the account : Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. b) To Decrease balance of the account : Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. Trial balance : Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate. (a) To Prepare: The journal entries using the perpetual inventory system for the month of April.

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Answer 1

Question

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

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Answer 2

Question

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

Answer 6

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

Answer 7

Chapter 5, Problem 5.4BP

(a)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Journal entries:

Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. In addition, it is the primary books of accounts for any entity to record the daily transactions and processed further till the presentation of the financial statements.

Accounting rules for journal entries:

a) To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

b) To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Trial balance:

Trial balance is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

(a)

To Prepare: The journal entries using the perpetual inventory system for the month of April.

Answer 8

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

Answer 9

(b)

To determine

To Post: The beginning balances and the transactions of April month in the ledger accounts.

Answer 10

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

Answer 11

(c)

To determine

To Prepare: A trial balance as on April 30, 2015.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - 5. When is cost of goods sold determined in a...Ch. 5 - 6. Distinguish between FOB shipping point and FOB...Ch. 5 - 7. Explain the meaning of the credit terms 2/10,...Ch. 5 - 8. Goods costing $2,000 are purchased on account...Ch. 5 - 9. Ming Xu believes revenues from credit sales may...Ch. 5 - 10. (a) What is the primary source document for...

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To Post: The beginning balances and the transactions of April month in the ledger accounts.

To Prepare: A trial balance as on April 30, 2015.

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