Question

GIVEN INFORMATION:

December 1: a new investor, made an investment in Byte by purchasing 2,700 shares of its common stock paying $72,900.00 in cash.  The par value of the common stock was $19.00 per share.

December 3:  Byte purchased a Ricoh Color Copier for $5,300.00.  The invoice number was 61298.  Byte paid 10% in cash and signed a three-year note for the remaining balance.   Interest at a rate of 6% a year will be paid semiannually.

December 3:  Byte received 13 Super Toners for resale to  customers at a cost of $20.00 per toner.  The invoice number was 7249, and requires payment within 30 days.

I need an answer with the following (for all listed journal entries below):

1) Transaction Name

2) Transaction Debit amount

3) Transaction Credit amount

I need help with the following journal entries: - Journal Entry #6 05. December 10: Byte sold 8 Super Toners to a customer on account for $57.00 each. The Sales order number was 12100. 06. December 10: Byte records the cost of the 8 Super Toners sold using FIFO. The sales order number was 12100. - Journal Entry #15 14. December 19: Byte sold 6 Super toners to a customer on account for $57.00 each. The sales order number was 12101. 15. December 19: Byte records the cost of the 6 Super Toners sold using FIFO. The sales order number was 12101.

Answer 1

If the perpetual inventory system is used, the inventory account and the cost of goods sold account are updated each time when a purchase or a sale is made.

Dec 3

Purchase = 13 × $20 = $260

Dec 10

Sales = 8 × $57 = $456

COGS = 8 × $20 = $160

Inventory Account Balance = $260 – $160 = $100

Dec 19

Sales = 6 × $57 = $342

COGS = 6 × $20 = $120

Assuming that all purchases and sales are made on credit, journal entries to be made should look as follows:

Date	Account Name	Debit	Credit
Dec-03	Inventories	260
	Accounts Payable		260
Dec-10	Account Receivable	456
	Sales		456
Dec-10	Cost of Goods Sold	160
	Inventories		160
Dec-19	Account Receivable	342
	Sales		342
Dec-19	Cost of Goods Sold	120
	Inventories		120

Note: Assuming that Purchase of super tones was made before Dec 19 at $20 each in order to make sale on Dec 19