In: Accounting
Accounting records for
RockfordRockford
Corporation yield the following data for the year ended
JuneJune
3030?,
20162016
?(assume sales returns are? non-existent):
Requirements
1. |
Journalize
Rockford'sRockford's inventory transactions for the year under the perpetual system. |
2. |
Report ending? inventory, sales, cost of goods? sold, and gross profit on the appropriate financial statement. |
Requirement 1. Journalize
Rockford'sRockford's
inventory transactions for the year under the perpetual system. ?(Record debits? first, then credits. Exclude explanations from any journal? entries.)
The first transaction is the purchase of inventory. Record the entry.
Inventory, June 30, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$15,000 |
Purchases of inventory (on account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
57,000 |
Sales of inventory – 84% on account; 16% for cash (cost $43,000) . . . . |
92,000 |
Inventory at FIFO, June 30, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
29,000 |
Accounts titles | debit | credit |
Merchandise inventory | 57000 | |
Accounts payable | 57000 | |
Purchase of inventory on account | ||
Cost of goods sold | 43000 | |
Merchandise inventory | 43000 | |
Cost of goods sold during the year | ||
Cash | 14720 | |
Accounts Receivable | 77280 | |
Sales | 92000 | |
Sales of goods | ||
No entry required for closing inventory | ||