Question

Someone, please help. I do not understand how to do the perpetual method for numbers 8,13 and 15

Sales Price of Retail Product	Customers are charged $75 for each unit purchased
Cost of Inventory for Products Purchased	Inventory can be purchased for $36 per unit

Price for Services Provided

Customers are charged $87 per hour for services rendered

Record the following transactions in the General Journal. ONLY NEED 8,13, AND 15

Trans.	Date	Description
1	Dec. 1	Borrow $115,000 from the local bank and signed a six-year installment note with payments of $1,905 at the end of each month. The annual interest rate is 6%. Current portion of Note at year end after December payment = 16,500
2	Dec. 1	Purchased a building for $56,000. Paid $2,000 in attorney fees, $4,000 in remodeling costs to get the building ready for use. The building has a 25-year useful life with residual value of $2,000.
3	Dec. 1	Sold $4,350 worth of gift cards in opening celebration for services to be provided in December. The gift cards expire at the end of the month.
4	Dec. 1	Sell 16,000 shares of no-par value common stock for $6 per share to obtain the funds necessary to start your business.
5	Dec. 1	Purchase $14,400 of inventory on account with terms 3/10 net 30.
6	Dec. 1	Purchase a vehicle necessary for business operations for $21,000 cash. The vehicle has a five year life with a residual value of $3,000.
7	Dec. 1	Pay $6,000 for one year of insurance in advance.
8	Dec. 3	Sell $15,000 of inventory to a customer who signs a 6-month promissory note at 6% with interest and principal due at maturity. perpetual method = 2 entries
9	Dec. 3	Purchase Supplies on account, $3,200.
10	Dec. 6	Provide $3,480 of services to customers who pay with gift cards (calculate using your hourly service rate) no terms specified.
11	Dec. 8	Company pays invoice for inventory purchased on December 1st within discount terms.
12	Dec. 10	Purchase an additional $8,640 of inventory for cash.
13	Dec. 12	Sell $7,500 of inventory to a customer on account with a sales discount of 2/10, n/30. (Perpetual method= 2 entries)
14	Dec. 20	The customer who purchased product on December 12th pays the amount due (within discount period).
15	Dec. 23	Sell $13,500 of inventory on account. (Perpetual method = 2 entries)
16	Dec. 31	Record the of $1,905 installment payment on the $115,000 installment note borrowed on December 1st. The annual interest rate is 6%.
17	Dec. 31	Pay employee salaries, $4,000.
18	Dec. 31	Pay cash dividends to shareholders of $0.10 per share.
19	Dec. 31	Vehicle did not meet expectations sold to another company for $23,000. (Record depreciation at date of sale and then record sale).

Answer 1

Transaction	Date	Account title and explanation	Debit	Credit
8	Dec. 3	Notes receivable	$15,000
		Sales revenue		$15,000
		[To record sales revenue]
		Cost of goods sold	$7,200
		Inventory		$7,200
		[To record cost of goods sold]
13	Dec. 12	Accounts receivable	$7,500
		Sales revenue		$7,500
		[To record sales revenue]
		Cost of goods sold	$3,600
		Inventory		$3,600
		[To record cost of goods sold]
15	Dec. 23	Accounts receivable	$13,500
		Sales revenue		$13,500
		[To record sales revenue]
		Cost of goods sold	$6,480
		Inventory		$6,480
		[To record cost of goods sold]

Calculations:

	Sales	/	Unit selling price	=	No. of units sold
Dec. 3	$15,000	/	$75	=	200
Dec. 12	$7,500	/	$75	=	100
Dec. 23	$13,500	/	$75	=	180
	No. of units sold	x	Unit cost of inventory	=	Cost of goods sold
Dec. 3	200	x	$36	=	$7,200
Dec. 12	100	x	$36	=	$3,600
Dec. 23	180	x	$36	=	$6,480