Question

In: Accounting

1. Green Cleaning purchased $500 of office supplies on credit. The company’s policy is to initially...

1. Green Cleaning purchased $500 of office supplies on credit. The company’s policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Green Cleaning make to record this transaction?

  • Debit Office supplies, $500; credit Cash, $500.

  • Debit Office supplies, $500; credit Accounts payable, $500.

  • Debit Accounts payable, $500; credit Office supplies, $500.

  • Debit Office supplies expense, $500; credit Cash, $500.

  • Debit Cash, $500; credit Office supplies, $500

2.

Purchases Sales
January: 10 units at $120 6 units
February: 20 units at $125 5 units
May: 15 units at $130 9 units
September: 12 units at $135 8 units
November: 10 units at $140

13 units

On December 31, there were 26 units remaining in ending inventory. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

  • $3,200.

  • $3,405.

  • $5,400.

  • $3,270.

  • $3,364.

Solutions

Expert Solution

Answer

1. Journal entries will Green Cleaning make to record this transaction

Hence the option Second is correct.

2. Cost of the ending inventory using LIFO Method.

Hence the Option 4 is correct

ekkarill92 answered 2 years ago
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