Question

Question 2--/75 View Policies Current Attempt in Progress Crane Company sells one product. Presented below is information for January for Crane Company. Jan. 1 Inventory 101 units at $4 each 4 Sale 80 units at $8 each 11 Purchase 144 units at $6 each 13 Sale 111 units at $9 each 20 Purchase 156 units at $7 each 27 Sale 100 units at $11 each Crane uses the FIFO cost flow assumption. All purchases and sales are on account. Assume Crane uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a

debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Compute gross profit using the periodic system. Gross profit $enter Gross profit in dollars eTextbook and Media List of Accounts Assume Crane uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record the sale enter a debit amount enter a credit amount enter an account title to record the sale enter a debit amount enter a credit amount (To record the sale) enter an account title to record the cost of inventory enter a debit amount enter a credit amount enter an account title to record the cost of inventory enter a debit amount enter a credit amount (To record the cost of inventory) choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title to record the sale enter a debit amount enter a credit amount enter an account title to record the sale enter a debit amount enter a credit amount (To record the sale) enter an account title to record the cost of inventory enter a debit amount enter a credit amount enter an account title to record the cost of inventory enter a debit amount enter a credit amount (To record the cost of inventory) choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title to record the sale enter a debit amount enter a credit amount enter an account title to record the sale enter a debit amount enter a credit amount (To record the sale) enter an account title to record the cost of inventory enter a debit amount enter a credit amount enter an account title to record the cost of inventory enter a debit amount enter a credit amount (To record the cost of inventory)

Answer 1

In the books of Crane Company: Periodic Inventory

Date	Account Titles	Debit	Credit
		$	$
Jan 4	Accounts Receivable	640
	Sales		640
Jan 11	Purchases ( 144 @ $ 6 )	864
	Accounts Payable		864
Jan 13	Accounts Receivable	999
	Sales		999
Jan 20	Purchases ( 156 @ $ 7 )	1,092
	Accounts Payable		1,092
Jan 27	Accounts Receivable	1,100
	Sales		1,100
Jan 31	Closing Inventory ( 110 @ $ 7 )	770
	Cost of Goods Sold ( balancing amount )	1,590
	Purchases		1,956
	Beginning Inventory ( 101 @ $ 4 )		404

In the books of Crane Company: Perpetual Inventory

Date	Account Titles	Debit	Credit
		$	$
Jan 4	Accounts Receivable	640
	Sales		640
Jan 4	Cost of Goods Sold ( 80 @ $ 4 )	320
	Inventory		320
Jan 11	Inventory ( 144 @ $ 6 )	864
	Accounts Payable		864
Jan 13	Accounts Receivable	999
	Sales		999
Jan 13	Cost of Goods Sold ( 21 @ $ 4 + 90 @ $ 6)	624
	Inventory		624
Jan 20	Inventory ( 156 @ $ 7 )	1,092
	Accounts Payable		1,092
Jan 27	Accounts Receivable	1,100
	Sales		1,100
Jan 27	Cost of Goods Sold ( 54 @ $ 6 + 46 @ $ 7 )	646
	Inventory		646