Question

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

Answer 1

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