(1)Prepare journal entries for both Periodic and Perpetual Inventory Systems and (2) Prepare the Unadjusted Trial Balance for both Inventory Systems. Merchandising Business TransactionsInstruction: Prepare the necessary journal entries under the perpetual and periodic inventory systemsassuming cost of goods is 75% of sales.Mr. A opened his own gadget store last Jan. 1, 2021 and has the following transactions for the month:Invested cash, P100,000 for the business.Paid advance rental for 3 months of P30,00001-Jan02-JanPurchased merchandise on cash for P35,000.Returned defective merchandise amounting to P3,000.05-Jan06-Jan10-JanSold merchandise on account for P48,000, terms 3/15, n/30Purchased merchandise on account for P32,000, terms 2/10, n/3012-JanPaid the shipping cost of P500Sold merchandise for P14,000 cash12-Jan15-Jan16-JanCustomers returned goods amounting to P2,000 from goods sold last Jan 1522-JanPaid the goods purchased last Jan 12.Received payment from the customers sold last Jan 10Purchase merchandise for P20,000, paid 5,000 down-payment and balance payable in1 month.Sold merchandise on account for P13,000, terms 3/15, n/3025-Jan26-Jan28-Jan30-JanPaid salaries of the employees for P15,00030-JanMr. A withdrew P5,000 for personal use.

Under Perpetual inventory system, Inventory account is updated to each purchase and sale and…

Answered: (1)Prepare journal entries for both…

(1)Prepare journal entries for both Periodic and Perpetual Inventory Systems and (2) Prepare the Unadjusted Trial Balance for both Inventory Systems.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 66BPSB: Recording Sale and Purchase Transactions Jordan Footwear sells athletic shoes and uses the perpetual...

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Recording Sale and Purchase Transactions Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordan engaged in the following transactions its first month of operations: a. On June1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of running shoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of $85 per pair, and the running shoes were purchased at a cost of $60 per pair. Jordan paid Mole Trucking $310 cash to transport the shoes from the manufacturer to Jordans warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on June 1 and arrived on June 4. b. On June 2, Jordan purchased 88 pairs of cross-training shoes for cash. The shoes cost Jordan $65 per pair. c. On June 6, Jordan purchased 125 pairs of tennis shoes on credit. Credit terms were 2/10, n/25. The shoes were purchased at a cost of $45 per pair. d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes in Transaction a. e. On June 12, Jordan determined that $585 of the tennis shoes were defective. Jordan returned the defective merchandise to the manufacturer. f. On June 18, Jordan sold 50 pairs of basketball shoes at $116 per pair, 92 pairs of running shoes for S85 per pair, 21 pairs of cross-training shoes for $100 per pair, and 48 pairs of tennis shoes for $68 per pair. All sales were for cash. The cost of the merchandise sold was $13,295. No sales returns are expected. g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. The cost of the merchandise returned was $850. h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $116 per pair and 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,675. i. On June 30, Jordan paid for the June 6 purchase of tennis shoes minus the return on June 12. j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for S85 each. The shoes were shipped F.O.B. destination and arrived at Jordan on July 3. Required: 1. Prepare the journal entries to record the sale and purchase transactions for Jordan during June 2019. 2. Assuming operating expenses of $5,300 and income taxes of $365, prepare Jordans income statement for June 2019.
Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80.000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debits
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Journalize the following sales transactions for Middleton. Journalize the following sales transactions for Middleton. Mar. Apr. 1 3 10 15 Middleton Supply sold merchandise inventory for $3,400. The cost of the inventory was $2,380. The customer paid cash. Middleton. Supply was running a promotion and the customer received a $160 award at the time of sale that can be used at a future date on any Middleton Supply merchandise. Sold $8,000 of supplies on account, credit terms are 1/10, n/45, FOB destination. Cost of goods is 5,600. Received payment from the customer on the amount due from March 3, less the discount. The customer used the $160 award when purchasing merchandise inventory for $300, the cost of the inventory was $210. The customer paid cash.
please
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StickUps Company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a Cash Disbursements Journal, and a General Journal. The following transactions occurred during the month of September 2020: Sept. 3 Purchased merchandise on credit for $6,200 from Pacer Co. 7 Sold merchandise on credit to J. Namal for $1,800, subject to a 2% sales discount if paid by the end of the month. Cost, $1,000. 9 Borrowed $5,500 by giving a note to the bank. 13 The owner, Dale Trent, invested an additional $7,000 cash into the business. 18 Sold merchandise to B. Baird for $460 cash. Cost, $280. 22 Paid Pacer Co. $6,200 for the merchandise purchased on September 3. 27 Received $1,764 from J. Namal in payment of the September 7 purchase. 30 Paid salaries of $3,200. Journalize the September transactions that should be recorded in the Cash Receipts Journal, assuming the perpetual inventory system. (Enter transactions in order) Image attached…
Current Attempt in Progress Record the following transactions on the books of Hiroole Ltd., which uses a perpetual inventory system. Hiroole's expected rate of return on sales is 4%. (a) Sold $32.800 of merchandise on April 28 to Valez Ltd., terms n/30. The goods sold had cost Hiroole $24,000. (List all debit entries before credit entries Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation April 28 April 28 (To record sales) (To record cost of goods sold) Debit Credit
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