Prepare a journal entry for the tansactions. Thank you! Instruction:Use Perpetual Inventory SystemTo determine the cost of goods sold in each sales transaction, the gross profit is 40% based oncost. (Sales Amount times 1.4)Journalize the following transactions of Ken Merchandising.Also, journalize the necessary adjustment for January 2016.After Journalizing, answer this question:Is there any missing merchandise inventory?Ken invested 500,000 cash into Ken Merchandising. Also, he paid 66,000 for six months'rent on the store space, P13,000 for business licenses and permits, and P60,000 forvarious store furniture.January 01January 01 He also bought P90,000 worth of office supplies on account with the intention to sellthem at a higher price. The company paid 500 for the shipping fee. FOB Terms: FOBShipping pointThe next day, the business received a P2,500 credit memo for allowance granted on thepurchased merchandise. The supplies were bought from Fact Supplies Store on termsn/60.January 02January 04The business bought P10,000 worth of supplies to be used in the store on terms 50%down payment, balance n/30.Michaela, a part time employee, was able to sell some of the store's merchandise to Mr.Daniel for P15,000 on terms 50% down payment, balance 2/10, n/30. FOB Terms: FOBDestination, Freight Collect. Mr. Daniel paid 900 shipping fee.January 10January 15 The business sold to Mrs. Cooper merchandise for P10,000 on terms 2/10, n/30.January 25Mr. Jonas paid the business P40,000 for merchandise bought on the same day. Mr.Jonas already paid all the merchandise in full, however, he requested that somemerchandise be delivered to his new business address sometime next month.At the end of the month, the business paid utilities totaling P5000 and miscellaneousexpenses amounting to P4,000.Merchandise inventory as of January 31, 2016, is P15,500, based on physical count. Thisexcludes the amount of inventory to be delivered, based on January 25 transaction.January 31 CHART OF ACCOUNTS100Assets400Revenues101Cash401Sales102Accounts Receivable402 Sales Return and Allowances103 Allowance for Doubtful AccountsMerchandise InventoryExpenses501 Cost of Goods Sold104500105 Prepaid RentStore Supplies502 Utilities Expense503 Salaries Expense504 Rent Expense505 Freight out106107Store Furniture108Accum. Depreciation - Store Furniture200Liabilities506 Taxes and Licenses Expense507 Store Supplies ExpenseAccounts Payable202 Salaries Payable201508 Depreciation Expense - Store Furniture509 Doubtful Accounts Expense203 Unearned sales510 Miscellaneous Expense300EquityKen Austria, Capital511Inventory ShortageIncome Summary301512

A perpetual inventory system is a program that continuously estimates your inventory based on your…

Instruction: Use Perpetual Inventory System To determine the cost of goods sold in each sales transaction, the gross profit is 40% based on cost. (Sales Amount times 1.4) Journalize the following transactions of Ken Merchandising. Also, journalize the necessary adjustment for January 2016. After Journalizing, answer this question: Is there any missing merchandise inventory?

Instruction: Use Perpetual Inventory System To determine the cost of goods sold in each sales transaction, the gross profit is 40% based on cost. (Sales Amount times 1.4) Journalize the following transactions of Ken Merchandising. Also, journalize the necessary adjustment for January 2016. After Journalizing, answer this question: Is there any missing merchandise inventory?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...

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Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
On September 30, 2013, the general ledger of Leons Golf Shop, which uses the calendar year as its accounting period, showed the following year-to-date account balances: The merchandise inventory account had a 48,000 balance on January 1, 2013. The historical gross profit percentage is 40%. Leon prepares quarterly financial statements and takes physical inventory once a yearat the end of the accounting period. In order to prepare the financial statements for the third quarter, the store needs to have an estimate of ending inventory. You have been asked to use the gross profit method to estimate the ending inventory. Review the worksheet called GP. Study it carefully because it may have a solution format somewhat different from the one shown in your textbook.
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December.
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
The following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to determine the firms cost of goods sold for 2012. Remember to change the year in row 24 and to enter new beginning inventory balances. Save the 2012 file as MFG3. Print the worksheet when done. If sales and other expenses were identical in 2011 and 2012, during which year did Twisp earn more income? Why?
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
A firm is preparing to make adjusting entries at the end of the accounting period. The balance of the merchandise inventory account is 200,000. If the firm is using the periodic inventory system, what does this balance represent?
On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Prepare the journal entry or entries to recognize this return if the company uses A. the perpetual inventory system B. the periodic inventory system
Selected transactions follow for Runner Sports Ltd. during the company's first month of business. The company expects a return rate of 8% and uses a perpetual inventory system. Feb. 2 Sold $1,145 of merchandise to Andrew Noren on account, terms n/30. The goods had cost Runner $768. Andrew Noren returned for credit $141 of the merchandise purchased on February 2. The goods had cost Runner $84 and they were returned to inventory. Sold $767 of merchandise to Dong Corporation on account, terms n/30. The goods had cost Runner $491. Sold $837 of merchandise to Michael Collins for cash. The goods had cost Runner $623. Sold $929 of merchandise to Rafik Kurji on account, terms n/30. The goods had cost Runner $685. Dong Corporation paid its account in full. Andrew Noren purchased an additional $693 of merchandise on account, terms n/30. The goods had cost Runner $410. Sold $1,737 of merchandise to Batstone Corporation, terms n/30. The goods had cost Runner $1,108. Andrew Noren paid $1,004 on…
Required information Use the following information for the Quick Study below. (Algo) (11-14) Skip to question [The following information applies to the questions displayed below.]Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $27 each. Purchases on December 7 10 units @ $13.00 cost Purchases on December 14 20 units @ $19.00 cost Purchases on December 21 15 units @ $21.00 cost QS 5-13 (Algo) Perpetual: Inventory costing with weighted average LO P1 Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)