Question

Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 220...

Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 220 items at $98 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.

  

Date

Transaction

Description

Mar. 5

Purchased

280 items @

$

108

Apr. 10

Sold

160 items @

$

211

June 19

Sold

170 items @

$

211

Sept. 16

Purchased

230 items @

$

113

Nov. 28

Sold

150 items @

$

216

Required

a.

Record the inventory transactions in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). All sales and purchases are for cash.

  1. RECORD ENTRY INVENTORY PURCHASE FOR CASH.

  2. Record sale if inventory for cash

  3. Record entry for cost of goods sold.

  4. Record sale of inventory for cash

  5. Record entry for cost of good sold

  6. Record entry inventory purchase for cash

  7. Record sale of inventory for cash

  8. Record entry for cost of good sold

Please show all work, especially values and calculations for journal entry #5 and #8, explain how you got the values

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Journal entry

Date General Journal Debit Credit
Mar 5 Merchandise inventory (280*108) 30240
Cash 30240
Apr 10 Cash (160*111) 17760
Sales revenue 17760
Apr 10 Cost of goods sold (160*98) 15680
Merchandise inventory 15680
June 19 Cash (170*211) 35870
Sales revenue 35870
June 19 Cost of goods sold (60*98+110*108)) 17760
Merchandise inventory 17760
Sep 13 Merchandise inventory (230*113) 25990
Cash 25990
Nov 28 Cash (150*216) 32400
Sales revenue 32400
Nov 28 Cost of goods sold (150*108) 16200
Merchandise inventory 16200
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 210...
Pam’s Creations had the following sales and purchase transactions during 2016. Beginning inventory consisted of 210 items at $89 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.    Date Transaction Description   Mar. 5 Purchased 190 items @ $ 99   Apr. 10 Sold 115 items @ $ 193   June 19 Sold 125 items @ $ 193   Sept. 16 Purchased 140 items @ $ 104   Nov. 28 Sold 105 items @ $ 198 record the inventory...
Problem 5-20A Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and...
Problem 5-20A Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise LO 5-1 [The following information applies to the questions displayed below.] Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 130 items at $81 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.    Date Transaction Description Mar. 5 Purchased 110 items @ $ 91 Apr. 10 Sold 75...
Problem 5-20A Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and...
Problem 5-20A Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise LO 5-1 [The following information applies to the questions displayed below.] Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 270 items at $95 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.    Date Transaction Description Mar. 5 Purchased 250 items @ $ 105 Apr. 10 Sold 145...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: John’s purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John’s account was credited by the supplier. Merchandise costing $3,700 was sold for $7,000 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: John's purchased merchandise on account for $5,100. Freight charges of $350 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $650 and John’s account was credited by the supplier. Merchandise costing $2,850 was sold for $5,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John’s purchased merchandise on account for $6,100. Freight charges of $850 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,150 and John’s account was credited by the supplier. Merchandise costing $3,350 was sold for $6,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry...
Duckstein Ltd uses special journals and a general journal. The following transactions occurred during September 2017....
Duckstein Ltd uses special journals and a general journal. The following transactions occurred during September 2017. Sept. 2. Sold inventory on account to R. Crow, invoice no. 101 for $960, terms n/30. The cost of the inventory sold was $600. Sept 10. Purchased inventory on credit from L. Dayne $1200, terms 2/7, n/30. Sept 12. Purchased of ce equipment on account from B. Piazza $13 000. Sep 21. Sold inventory on account to Buffy Ltd, invoice no. 102 for $1600,...
Rite Shoes was involved in the transactions described below. Purchased $8,700 of inventory on account. Paid...
Rite Shoes was involved in the transactions described below. Purchased $8,700 of inventory on account. Paid weekly salaries and wages, $970. Recorded sales for the first week: Cash: $7,600; On account: $5,800. Paid for inventory purchased in event (1). Placed an order for $6,700 of inventory. Required: Prepare the appropriate journal entry for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fielRite Shoes was involved in the transactions described...
The Hat Store had the following series of transactions for 2016:     Date Transaction Description   Jan....
The Hat Store had the following series of transactions for 2016:     Date Transaction Description   Jan. 1 Beginning inventory 45 units @ $ 20.00   Mar. 15 Purchased 220 units @ $ 24.00   May 30 Sold 160 units @ $ 39.50   Aug. 10 Purchased 245 units @ $ 25.00   Nov. 20 Sold 340 units @ $ 39.50    Required Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost...
On June 5, Staley Electronics purchases 180 units of inventory on account for $18 each. After...
On June 5, Staley Electronics purchases 180 units of inventory on account for $18 each. After closer examination, Staley determines 20 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $31 each. Required: Record transactions for the purchase, return, and sale of inventory assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT