Question

Cambridge Technologies Inc. began 2017 with inventory of $21,000. During the​ year, Cambridge purchased inventory costing $110,000 and sold goods for $165,000​, with all transactions on account. Cambridge ended the year with inventory of $34,000. Cambridge prepared the following journal entries under the periodic inventory system at year​ end:

och for $185,0CC with winescenccount Carmodge ended the year with in wory of $34.000 Cambridge prepared the followigjcumalis under the Camaridge Tacancies Inc began 2017 with inventory of S2100n During na Cambr u ncharadwentory paling $110CCO wild periodic i rry ywem al year end B (Click the icon to view the foumal entries. Requirement 1. Peat to the Inverary And Coat of Goods Sald amounta. 2. Compule cusl of you would by the cul-of-gouds-ould model. 3. Prepare the December 2017 income statement of Cambridge Technologies Inc. through gross prof. Requirement 1. Post the beginning balances are all entries to the Inventory and Cos of Good: Sold accounts. (Leave any unused cells blank.) Inventory Cost of Goods Sold i Journal entrias Journal Entry Endbal Endba Accounts Debit Credit Begal Requirement 2. Comoule bost of goods sold by the cost-of-goods-sold irodel. 110,000 JE1 Punch Au Payable 110.000 JE2 Account Receive 165,000 165.000 21.000 21000 Sales Revere JES Coul of Goods Solu Inventory JE4 Inventory Cost of Goods Sold JES Cost at Goods Sold 34.000 Goods avalatie JES Locs: Cost of goods sold Requirement 3. Prepare the Darmar 2017 income statement of Cambrice Technologies Inc. through gros pont Cambridge Technologies Inc. Income Statement For the Year Ended December, 2017 34.000 110, UCC Purchases 110,000 Print Done Grasa prott

Answer 1

Solution :
1..
a..
Inventory account
Particular	$	Particular	$
To opening balance	21000	By cost of good sold	97000
To purchase	110000	By ending balance / balance c/d	34000
b..
Cost of good sold account
Particular	$	Particular	$
To opening inventory 21000		By closing inventory	34000
To purchase	110000	By ending balance	97000
		( cost of good sold)
2..
Computation of cost of good sold by the cost of good sold model
Particular	$
Opening inventory	21000
Plus: Purchase	110000
Gross available	131000
Less:Ending inventory	34000
Cost of good sold	97000
3..
Cambridge Technologies Inc.
Income statement
For the year ended December 31, 2017
Particular	$
Gross sales	165000
Less: cost of good sold	97000
Gross profit	68000