#5.Utilize the following events to:

A. Record the general journal entries for each event assuming a Perpetual System.

B. Set up the following T-accounts: Cash (assume a $130,000 beginning balance), Inventory, Purchases, Cost of Goods Sold and Sales Revenue. Then post from your general journal entries in A. above to these accounts.

C. Prepare a short Income Statement and Balance Sheet.

Events:

a.Lightheaded Inc.purchases 50,000 LED bulbs for resale to customers at a cost of $2.00 each, paying cash for the bulbs.

b.Lightheaded Inc.sells 2,000 of the bulbs for $5.00 each to customers for cash (you will need both a revenue entry and an expense entry under the perpetual system).

c.Lightheaded Inc. pays cash for another 10,000 bulbs for resale at a cost of 2.00 each.

d.Lightheaded Inc. sells 42,000 bulbs on account to a major box store retailer for $4.80 each (you will need both a revenue entry and an expense entry under the perpetual system).

e.Lightheaded Inc.counts their inventory, revealing a 15,400 bulbs left in stock.

#6. 1.Utilize the events from problem 5 above for a Periodic Inventory System to:

A. Record the general journal entries for each event assuming a Periodic System.

B. Set up the following T-accounts: Cash (assume a $130,000 beginning balance), Inventory, Purchases, Cost of Goods Sold and Sales Revenue. Then post from your general journal entries in A. above to these accounts.

C. Prepare a short Income Statement and Balance Sheet.