Question
In: Accounting
CKL Limited Inc. uses a perpetual inventory system. During the month of April 2020, the following...
CKL Limited Inc. uses a perpetual inventory system.
During the month of April 2020, the following transactions occurred.
On April 2, CKL purchased $300 of office supplies on account, terms net 30 days.
On April 5, CKL sold $3,500 of merchandise to Wong Enterprises on credit terms of 2/15 net 30 days. The of the inventory was $1,750.
On April 7, CKL Limited purchased $4,900 of inventory from VanCity Wholesalers on terms of 1/15 net 30, FOB destination.
On April 7, CKL made a $4,250 mortgage payment to the bank. Of this amount, $3,780 was for interest and $470 was to reduce the balance of the loan.
On April 9, CKL returned $500 of inventory purchased on April 7 to VanCity Wholesalers.
On April 13, Wong Enterprises who purchased goods on April 5, returned some stock to CKL Limited. The selling price of the inventory returned was $800 and the cost was $400. The returned items was returned to CKL Limited’s inventory.
On April 14, CKL received payment from Wong Enterprises for its April 5 purchase.
On April 20, CKL paid its April 7 purchase from VanCity Wholesalers.
REQUIRED - Prepare journal entries to record the above transactions. Record your calculations instead of explanations. Do not abbreviate the names of the ledger accounts.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
CKL Limited Inc. uses a perpetual inventory system. During the month of April 2020, the following...
CKL Limited Inc. uses a perpetual inventory system. During the
month of April 2020, the following transactions occurred.
On April 2, CKL purchased $300 of office supplies on account,
terms net 30 days.
On April 5, CKL sold $3,500 of merchandise to Wong Enterprises
on credit terms
of 2/15 net 30 days. The of the inventory was $1,750.
On April 7, CKL Limited purchased $4,900 of inventory from
VanCity
Wholesalers on terms of 1/15 net 30, FOB destination.
On April...
Mead Company uses a perpetual inventory system and engaged in the following transactions during the month...
Mead Company uses a perpetual inventory system and engaged in
the following transactions during the month of May:
Date
Transaction
May 1
Made cash sales of $8,100; the cost of the inventory was
$3,100.
5
Purchased $2,400 of inventory on credit.
9
Made credit sales of $3,500; the cost of the inventory sold was
$2,100.
13
Paid sales salaries of $800 and office salaries of $500.
14
Paid for the May 5 purchases.
18
Purchased sales equipment costing $5,100; made...
ABC Corporation uses a perpetual inventory system. The following transactions affected itsmerchandise inventory during the month...
ABC Corporation uses a perpetual inventory system. The following
transactions affected itsmerchandise inventory during the month of
June 2018:June 2 Inventory on hand-1,500 units; cost$4.50 each. 6
Purchased 5,000 units for $5.00 each. 13 .Sold 5,500 units for
$10.00 each. 21 Purchased 8,000 units for $5.50 each. 26 Sold 5,000
units for $9.00 each. 30 Inventory on hand-4,000 units. Determine
the inventory balance ABC would report in its June 30, 2018,
balance sheet and the cost of goods sold it...
Grouper Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations:
Grouper Limited uses a perpetual inventory system. The inventory
records show the following data for its first month of
operations:DateExplanationUnitsUnit CostTotal CostBalance in
UnitsAug.2Purchases251$72$18,0722513Purchases49810351,29474910Sales(300)44915Purchases902118106,4361,35125Sales(332)1,019Calculate the cost of goods sold and ending inventory using the
FIFO cost method.Cost of goods sold$enter a dollar amountEnding inventory$enter a dollar amount Calculate the cost of goods sold and ending inventory using the
average cost method. (Round average cost per unit and
final answers to 2 decimal places, e.g. 1.25.)Cost of goods sold$enter a dollar amountEnding...
The following transactions occurred during 2020 (the company uses a perpetual inventory system with FIFO): 1)...
The following transactions occurred during 2020 (the company
uses a perpetual inventory system with FIFO):
1) Jan 4 Stockholders invested an additional $10,000 cash in the
business in exchange for common stock
2) Jan 4 Purchased 20 rabbits at $50 each on account from Jelly
Bean Farms.
3) Jan 4 Established a $200 petty change fund
4) Jan 5 Sold 6 rabbits for $200 each to Mr. Karrot, terms 2/10,
n/30.
5) Jan 6 Sold 12 rabbits at $200 each...
Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:...
Olaf Corp. uses a perpetual inventory system. The company had
the following inventory transactions in April:
April
3
Purchased merchandise from Flounder Ltd. for $30,700, terms
1/10, n/30, FOB shipping point.
6
The appropriate company paid freight costs of $660 on the
merchandise purchased on April 3.
7
Purchased supplies on account for $5,490.
8
Returned damaged merchandise to Flounder and was given a
purchase allowance of $3,700. The merchandise was repaired by
Flounder and returned to inventory for future...
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month...
Klump Co. uses a perpetual inventory system and had the
following inventory transactions for the month of March.
Beginning Inventory - 150 units at $81
March 7 Sold 70 units
March 11 Purchase 200 units at $85
March 12 Sold 220 units
If the company uses the FIFO inventory costing method, the
amount of ending inventory reported on the balance sheet is:
Ayayai Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month...
Ayayai Ltd. uses the perpetual inventory system and reports the
following inventory transactions for the month of June:
Date
Explanation
Units
Unit Cost
Total Cost
June
1
Beginning inventory
1,390
$4
$5,560.00
12
Purchases
2,230
5
11,150
15
Sale
(2,640
)
16
Purchases
4,580
6
27,480
23
Purchases
1,640
7
11,480
27
Sales
(5,460
)
Part 1
Determine the cost of goods sold and the cost of the ending
inventory using (1) FIFO and (2) Average cost. (Round
average
final...
Ayayai Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month...
Ayayai Ltd. uses the perpetual inventory system and reports the
following inventory transactions for the month of June:
Date
Explanation
Units
Unit Cost/Price
Total Cost
June
1
Beginning inventory
1,480
$5
$7,400
12
Purchases
2,340
6
14,040
15
Sale
(2,420
)
12
16
Purchases
4,280
7
29,960
23
Purchases
1,580
8
12,640
27
Sales
(5,580
)
15
alculate the gross profit for the month of June using (1) FIFO
and (2) average cost. (Round average final answers to 2
decimal...
Concord Limited uses a perpetual inventory system. The inventory records show the following data for its...
Concord Limited uses a perpetual inventory system. The inventory
records show the following data for its first month of
operations:
Date
Explanation
Units
Unit Cost
Total Cost
Balance in
Units
Aug.
2
Purchases
237
$73
$17,301
237
3
Purchases
475
97
46,075
712
10
Sales
(300
)
412
15
Purchases
894
122
109,068
1,306
25
Sales
(330
)
976
Calculate the cost of goods sold and ending inventory using the
FIFO cost method.
Cost of goods sold
$enter a dollar...
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