Chapter 6, Problem 1CACR

(a)

To determine

Record the journal entries for Company W using perpetual inventory method.

(b)

To determine

Prepare the ledger account for the above transactions recorded.

(c)

To determine

Prepare the adjusted trial balance at December 31, 2017.

(d)

To determine

Prepare the income statement for the month ended December 31, 2017 and a classified balance sheet at December 31, 2017.

(e)

To determine

Compute the ending inventory and cost of goods sold under FIFO method.

(f)

To determine

Compute the ending inventory and cost of goods sold under LIFO method.