Question

2) Cozelle, Inc., purchased inventory costing $125,000 and sold 80% of the goods for $200,000 All purchases and sales were on account. Cozelle later collected 25% of the accounts receivable. Assume that sales returns are nonexistent. Required II. For Journalize these transactions for Cozelle, which uses the perpetual inventory system. For these transactions, show what Cozelle will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement.

Answer 1

Ayo Answer: 2 0 prepare journal entry to record the purchases of inventory: Assets = liabilities +stock holders' Equity + 1255000 ( inventary) - $ias, cod accounts payable Rest Debit() crcditco) Accounts Tithe Eu Explanation învcatory Accounts payable 125,000 125,000 Prepare Journal entry to record the sales Date particulars post. abitudo credit (8) 200,000 200,000 Accounts receivable sales revenue Prepare journal Entry to record the cast of goods sold : L particulars postar 1 Debit (Acredit(t) cost of Goods sold inventory Date 100,000 1001000

Cose is sold = 80% X $125,000 = $100,000 Journal Entry to record collection of accounts receivable Dati Cash Collection = 25%. *$200,000 = $50,000 Account Title Ee Explanation I post. | Debit (4) Cash 50.000 Accounts receivable / credit 50.000 @ inventory = $125,000-$100,000 = $ 25,000 The presentation of inventory in balance shut : C, Incorporation balance sheet (Partial As an Morth End). Amount (1) Details Asses: current assets : inventory 25,000

Gross profit= sales revenue - cost de goods sold ☺ - 200,000 – 100,000 = $100,000. . The presentation de sales revenue, Expense, and gross profit in income statement at the end of the month. G, Incorporation income statement partial for the month End). Details Amount (2) _{tyt.jԱՆԸ: 200,000 sales xermus cast do goods sold Gross profit 100,000 100,000