Accounting records for Allegheny Corporation yield the following data for the year ended June 30, 2018: Inventory,

Question:

Accounting records for Allegheny Corporation yield the following data for the year ended June 30, 2018:

Inventory, June 30, 2017............................................................................. $ 13,000
Purchases of inventory (on account)............................................................ 53,000
Sales of inventory—82% on account; 18% for cash (cost $46,000) ......... 73,000
Inventory at FIFO, June 30, 2018 .................................................................. 20,000


Requirements

1. Journalize Allegheny’s inventory 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.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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