Question

Accounting records for Allegheny Corporation yield the follow ng data for the year ended June 30, 2016(assume sales returns are non e stent : (Click the icon to view the accounting records.) Requirements 1 Journalize Allegheny's iniventory transactions for the year under the perpetual system. 2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement Requirement 1. Joumalize Allegheny's inventory transactions for the year under the perpetual system. (Record debits first, then credits. Exclude explanations from any journal entries.) The first transaction is the purchase of inventory. Record the entry. Data Table Journal Entry Accounts Date Debit Credit Jun 30 Inventory, June 30, 2015 Purchases of inventory (on account) Sales of irrventory-83% on account; 17% for cash (cost $42,000) Inventory at FIFO, June 30, 2016 S 8,000 66,000 96.000 32,000 Print Done

Answer 1

1)

Date	Account	debit	credit
1	Merchandise inventory	66000
	Accounts payable		66000
2	cash	16320
	Accounts receivable [96000*.83]	79680
	sales revenue		96000
	[being sales made ]
	cost of goods sold	42000
	merchandise inventory		42000
	[cost of sales recorded ]

2)

Income statement for the period ended 30 june 2016
sales revenue	96000
cost of goods sold	(42000)
Gross profit	54000

Balance sheet as on 30 june 2016
Asset
current asset
Inventory	32000