4.

The following information is available for the Johnson Corporation for 2016:

Beginning inventory	$	29,000
Merchandise purchases (on account)		159,000
Freight charges on purchases (paid in cash)		14,000
Merchandise returned to supplier (for credit)		16,000
Ending inventory		34,000
Sales (on account)		254,000
Cost of merchandise sold		152,000

Required:

Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Perpetual system:

Journal entry worksheet:

Record merchandise purchased on account for $159,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
1

Record the payment of $14,000 in cash for freight charges.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
2

Record merchandise returned to supplier for credit of $16,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
3

Record sales on account of $254,000

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
4

Record cost of merchandise sold of $152,000

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
5

Record the end period adjusting entry. ending inventory is $34,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
6

Periodic System;

Record merchandise purchased on account for $159,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
1

Record the payment of $14,000 in cash for freight charges.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
2

Record merchandise returned to supplier for credit of $16,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
3

Record sales on account of $254,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
4

Record cost of merchandise sold of $152,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
5

Record the end of period adjusting entry. ending inventory is $34,000.

Transaction	GENERAL JOURNAL	DEBIT	CREDIT
6