Chapter 6, Problem 6.9BP

Record transactions and prepare a partial income statement using a periodic inventory system (LO6–8)

Refer to the transactions of Circuit Country in P6–3B.

Required:

  1.    Assuming that Circuit Country uses a periodic inventory system, record the transactions.

  2.    Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $2,078.

  3.    Prepare the top section of the multiple-step income statement through gross profit for the month of June.