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   
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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
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