Question

PLEASE READ CAREFULLY BEFORE STARTING THE ASSIGNMENT!!! I ALREADY HAVE ANSWERS FOR THE "FIFO" PART, BUT I DON'T HAVE THE ANSWER FOR THE "JOURNAL" PART. I'VE SEEN THE SAME QUESTION ASKED MANY TIMES ON CHEGG BEFORE, BUT NONE OF THEM HAD THE JOURNAL, SO PLEASE ANSWER THAT PART CAREFULLY AND CORRECTLY. USE THE SAME EXACT TABLE THAT I PROVIDED BELOW WITH THE CORRECT DATES, ACCOUNT TITLES AND AMOUNT. MAKE SURE THERE'S NO EXTRA OR ANY LESS ENTRY THAN THE EXACT NUMBER OF ENTRIES THAT'S SUPPSOED TO BE THERE AS PROVIDED IN THE TABLE BELOW.

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows:

Date		Transaction	Number of Units	Per Unit	Total
Jan.	1	Inventory	7,500	$75.00	$562,500
	10	Purchase	22,500	85.00	1,912,500
	28	Sale	11,250	150.00	1,687,500
	30	Sale	3,750	150.00	562,500
Feb.	5	Sale	1,500	150.00	225,000
	10	Purchase	54,000	87.50	4,725,000
	16	Sale	27,000	160.00	4,320,000
	28	Sale	25,500	160.00	4,080,000
Mar.	5	Purchase	45,000	89.50	4,027,500
	14	Sale	30,000	160.00	4,800,000
	25	Purchase	7,500	90.00	675,000
	30	Sale	26,250	160.00	4,200,000

	Instructions
1.	Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first-in, first-out method.
2.	Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.
3.	Determine the gross profit from sales for the period.
4.	Determine the ending inventory cost as of March 31.
5.	Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in

Exhibit 3

, using the first-in, first-out method.

Date	Purchases			Cost of Merchandise Sold			Inventory
	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1							7500	75	562500
10	22500	85	1912500				7500	75	562500
10							22500	85	1912500
28				7500	75	562500
28				3750	85	318750	18750	85	1593750
30				3750	85	318750	15000	85	1275000
Feb. 5				1500	85	127500	13500	85	1147500
10	54000	87.5	4725000				13500	85	1147500
10							54000	87.5	4725000
16				13500	85	1147500
16				13500	87.5	1181250	40500	87.5	3543750
28				25500	87.5	2231250	15000	87.5	1312500
Mar. 5	45000	89.5	4027500				15000	87.5	1312500
5							45000	89.5	4027500
14				15000	87.5	1312500
14				15000	89.5	1342500	30000	89.5	2685000
25	7500	90	675000				30000	89.5	2685000
25							7500	90	675000
30				26250	89.5	2349375	3750	89.5	335625
30							7500	90	675000
31	Balances					10891875			1010625

CHART OF ACCOUNTS

Midnight Supplies

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.

Question not attempted.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 0/51

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Answer 1

Solution 2:

Computation of Sales
Date	Sales Qty	Selling Price	Sale Value
28-Jan	11250	$150.00	$1,687,500.00
30-Jan	3750	$150.00	$562,500.00
5-Feb	1500	$150.00	$225,000.00
16-Feb	27000	$160.00	$4,320,000.00
28-Feb	25500	$160.00	$4,080,000.00
14-Mar	30000	$160.00	$4,800,000.00
30-Mar	26250	$160.00	$4,200,000.00
Total	125250		$19,875,000.00

Journal - Accounting Equation
S no	Date	Description	Post Ref	Debit	Credit	Assets	Liabilities	Equity
1	31-Mar	Accounts receivables		$19,875,000.00		$19,875,000.00
2	31-Mar	Sales Revenue			$19,875,000.00			$19,875,000.00
3	31-Mar	Cost of goods sold		$10,891,875.00				-$10,891,875.00
4	31-Mar	Inventory			$10,891,875.00	-$10,891,875.00