Question

IL. 20) JR Tire Store The company uses a perpetual inventory system. 1) Prepare the company's inventory record using LIFO. on October 18 and 26. reported the following October purchases and sales data for a line of tires it deals. 2) Identify cost of goods sold for the month and the profit of the month.3).Journalize the transactions Date Item Quantity (Units Unit Price $68 65 90 67 91 Oct. 1 Beginning Inventory 10 2 7 Sales 18 Purchase 26 Sales TV. (40) Journalize the following transactions according to the descriptions and requirements: 1. In March, Smith Co. completed the following transactions: July 1 Received S10,000 contribution from Bill Alone in exchange for capital. 5 Paid utilities expense of $400. 12 Purchased equipment on account, $2,400 21 The owner, Bill Alone, withdrew $500 cash from the business. 27 Performed services for a client on account, $3,400 Journalize each of the above transactions. 2. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of $109,000. St

Answer 1

Req a:
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Oct							10	68	680
							2	65	130
7-Oct				2	65	130	4	68	272
				6	68	408
18-Oct	4	67	268				4	68	272
							4	67	268
26-Oct				4	67	268
				1	68	68	3	68	204
TOTAL	4		268	13		874	3	68	204
Req b:
Cost of goods sold: 874
Gross profit for the year:
Sales revenue (8*90+5*91)			1175
Less: Cost of good s sold			874
Gross profit for the year:			301
Req c:
Journal entries
Date	Accounts title and explanations				Debit $	Credit $
18-Oct	Merchandise inventory Dr.				268
	Accounts payable					268
26-Oct	Accounts receivable dr. (5*91)				455
	Sales revenue					455
26-Oct	Cost of good s sold Dr.				336
	Merchandise inventory					336