Consider the September transactions for Sherman Lawn Service. (Cost data has been removed from the sale transactions).

Requirements
1. Prepare perpetual inventory records for September for Sherman using the FIFO method. (Note: You must figure cost on the 15th, 25th, and 30th.)
2. Journalize and post the September transactions using the perpetual inventory record created in requirement 1. Key all items by date. Compute each account balance, and denote the balance as Bal.
3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits in the ledger.

Transcribed Image Text:

Sep 2 Completed lawn service and received cash of $500 5 Purchased 100 plants on account for inventory, $250, plus freight in of $10 15 Sold 40 plants on account, $400 17 Consulted with a client on landscaping design for a fee of $150 on account 20 Purchased 100 plants on account for inventory, $300 21 Paid on account, $100 25 Sold 100 plants for cash, $700 30 Recorded the following adjusting entries: Depreciation, $29 Physical count of plant inventory, 50 plants