Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000. In addition to the cost of inventory, the company also pays$600 for freight charges associated with the purchase on the same day. Record the purchase of inventory on February 2, including the freight charges.
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Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October.
- Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at October 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31.
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
Required: 1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense. 2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero. 3. After calculating the ending balance of each account, prepare a trial balance.
Tony and Suzie graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 shares of common stock for
$ 1. Record each transaction in July for Great Adventures. 2. Post each transaction to T-accounts. 3. Prepare a trial balance.
Consider the recorded transactions below.
Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $3,400; Accounts Receivable,$4,200; Supplies, $400; Accounts Payable,$3,500; Deferred Revenue, $300. Service Revenue and Advertising Expense each have a beginning balance of zero.