ADDITIONAL INFORMATION: 1) of the mortgage payable, $24,000 is to be paid April 30, 2022. 2) A physical inventory count determined that merchandise inventory on December 31, 2021 was $ 20,220 IMPORTANT DIFFERENCES BETWEEN THE PERPETUAL AND PERIODIC INVENTORY SYSTEMS: 1) Merchandise Inventory shown on the adjusted trial balance for PERIODIC inventory is the BEGINNING balance in inventory since this account hasn't been used all fiscal period. 2) Purchases, purchase discounts, purchase returns and allowances, and freight-in are all accounts used only with the PERIODIC inventory system. . 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 17 Furry Friends Pet Supplies Adjusted Trial Balance December 31, 2021 PERPETUAL PERIODIC Debit Credit Debit Credit Cash S $ 8,000 S $ 8,000 Accounts receivable 56,860 56,860 Merchandise inventory 20,220 10,800 Land 100,000 100,000 Building 250,000 250,000 Accumulated depreciation-building $ 87,500 S 87,500 Equipment 66,000 66,000 Accumulated depreciation equipment 33,000 33,000 Accounts payable 23,460 23,460 Unearned revenue 4,390 4,390 Salaries payable 2,910 2,910 Interest payable 450 450 Mortgage payable 230,000 230,000 J. George, capital 143,120 143,120 J. George, drawings 50,050 50,050 Sales 789,030 789,030 Sales discounts 7,890 7,890 Sales returns and allowances 19,730 19,730 Purchases 468,130 Purchase discounts 11,530 Purchase returns and allowances 18,500 Freight in 5,290 Cost of Goods Sold 433,970 Salaries expense 231,200 231,200 Depreciation expense 32,040 32,040 Utilities expense 12.020 12,020 Insurance expense 9,600 9,600 Freight out 4,310 Property tax expense 4,020 4,020 Interest revenue 1,070 1,070 Interest expense 9,020 9,020 Total $ 1,314,930 $ 1,314,930 $ 1,344,960 $ 1,344,960 3) Cost of Goods Sold has only been used during the fiscal period under the PERPETUAL inventoy system. It is NOT used under the PERIODIC inventory system throughout the accounting period. 4) Cost of Goods Sold must be calculated at end of the fiscal period with the PERIODIC inventory system. 4,310 MULTI-STEP - PERIODIC 50 REQUIRED 51 52 Part A Multi-step and Single-step Income Statements -- Perpetual and Periodic 53 54 Prepare a multi-step and single-step income statement under each of the 2 inventory systems, using the area provided below. 55 56 MULTI-STEP - PERPETUAL 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 76 77 78 79 80 81 82 83 84 85 86 87 Instructions work area + SINGLE-STEP - PERPETUAL SINGLE-STEP - PERIODIC 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 *identical to the single-step is for perpetual tc Inventory Costing -- Perpetual and Periodic uming the following purchase and sale transactions, and using the four tracking schedules below, calculate the cost of the ending inventory and cost of goods sold using both FIFO and Weighted Average under each of the 2 inventory systems. Date Transaction Units Sales Price Once your tracking schedules are complete, cell-reference your answers from the tables below here: Unit Cost $60 $62 Perpetual FIFO w Avg Periodic FIFO W Avg $90 Jan. 1 Beginning inventory 10 Purchase 15 Sale 19 Purchase 25 Sale Ending Inventory 180 700 (550) 400 (100) 630 Cost of Goods Sold Ending Inventory $64 $90 Enter answers in chronological date order (earliest to most recent). Enter answers in chronological date order (earliest to most recent). Perpetual - FIFO Purchases Cost Cost of Goods Sold Cost Inventory Balance Cost Periodic - FIFO Cost of Goods Available for Sale Date Explanation Jan. 1 Units Total Units Total Units Total Units Unit Cost Total Cost Date Beg Inv Jan. 10 15 Ending Inventory Date Explanation Units Unit Cost Total Cost 19 25 Units Total Cost Cost of Goods Sold Cost of goods available for sale Less: ending inventory Cost of Goods Sold CHECK: COGAS - Ending Inventory = COGS A B C D E F G H J M N 0 P Q R S AE 15 Ending Inventory Date Explanation Units Unit Cost Total Cost ng 19 25 Units Total Cost Cost of Goods Sold Cost of goods available for sale Less: ending inventory Cost of Goods Sold CHECK: COGAS - Ending Inventory = COGS CHECK (of COGS): Date Explanation Units Unit Cost Total Cost 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 Do not round weighted average unit cost. Use an excel formula to calculate this amount and not a calculator. Periodic - Weighted Average Units Unit Cost Total Cost Perpetual - Weighted Average Purchases Date Units Cost Beg Inv Jan. 10 Cost of Goods Sold Cost Inventory Balance Cost Total Units Total Units Total Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold 15 CHECK: Units x Unit Cost 19 25 CHECK: COGAS - Ending Inventory = COGS ADDITIONAL INFORMATION: 1) of the mortgage payable, $24,000 is to be paid April 30, 2022. 2) A physical inventory count determined that merchandise inventory on December 31, 2021 was $ 20,220 IMPORTANT DIFFERENCES BETWEEN THE PERPETUAL AND PERIODIC INVENTORY SYSTEMS: 1) Merchandise Inventory shown on the adjusted trial balance for PERIODIC inventory is the BEGINNING balance in inventory since this account hasn't been used all fiscal period. 2) Purchases, purchase discounts, purchase returns and allowances, and freight-in are all accounts used only with the PERIODIC inventory system. . 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 17 Furry Friends Pet Supplies Adjusted Trial Balance December 31, 2021 PERPETUAL PERIODIC Debit Credit Debit Credit Cash S $ 8,000 S $ 8,000 Accounts receivable 56,860 56,860 Merchandise inventory 20,220 10,800 Land 100,000 100,000 Building 250,000 250,000 Accumulated depreciation-building $ 87,500 S 87,500 Equipment 66,000 66,000 Accumulated depreciation equipment 33,000 33,000 Accounts payable 23,460 23,460 Unearned revenue 4,390 4,390 Salaries payable 2,910 2,910 Interest payable 450 450 Mortgage payable 230,000 230,000 J. George, capital 143,120 143,120 J. George, drawings 50,050 50,050 Sales 789,030 789,030 Sales discounts 7,890 7,890 Sales returns and allowances 19,730 19,730 Purchases 468,130 Purchase discounts 11,530 Purchase returns and allowances 18,500 Freight in 5,290 Cost of Goods Sold 433,970 Salaries expense 231,200 231,200 Depreciation expense 32,040 32,040 Utilities expense 12.020 12,020 Insurance expense 9,600 9,600 Freight out 4,310 Property tax expense 4,020 4,020 Interest revenue 1,070 1,070 Interest expense 9,020 9,020 Total $ 1,314,930 $ 1,314,930 $ 1,344,960 $ 1,344,960 3) Cost of Goods Sold has only been used during the fiscal period under the PERPETUAL inventoy system. It is NOT used under the PERIODIC inventory system throughout the accounting period. 4) Cost of Goods Sold must be calculated at end of the fiscal period with the PERIODIC inventory system. 4,310 MULTI-STEP - PERIODIC 50 REQUIRED 51 52 Part A Multi-step and Single-step Income Statements -- Perpetual and Periodic 53 54 Prepare a multi-step and single-step income statement under each of the 2 inventory systems, using the area provided below. 55 56 MULTI-STEP - PERPETUAL 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 76 77 78 79 80 81 82 83 84 85 86 87 Instructions work area + SINGLE-STEP - PERPETUAL SINGLE-STEP - PERIODIC 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 *identical to the single-step is for perpetual tc Inventory Costing -- Perpetual and Periodic uming the following purchase and sale transactions, and using the four tracking schedules below, calculate the cost of the ending inventory and cost of goods sold using both FIFO and Weighted Average under each of the 2 inventory systems. Date Transaction Units Sales Price Once your tracking schedules are complete, cell-reference your answers from the tables below here: Unit Cost $60 $62 Perpetual FIFO w Avg Periodic FIFO W Avg $90 Jan. 1 Beginning inventory 10 Purchase 15 Sale 19 Purchase 25 Sale Ending Inventory 180 700 (550) 400 (100) 630 Cost of Goods Sold Ending Inventory $64 $90 Enter answers in chronological date order (earliest to most recent). Enter answers in chronological date order (earliest to most recent). Perpetual - FIFO Purchases Cost Cost of Goods Sold Cost Inventory Balance Cost Periodic - FIFO Cost of Goods Available for Sale Date Explanation Jan. 1 Units Total Units Total Units Total Units Unit Cost Total Cost Date Beg Inv Jan. 10 15 Ending Inventory Date Explanation Units Unit Cost Total Cost 19 25 Units Total Cost Cost of Goods Sold Cost of goods available for sale Less: ending inventory Cost of Goods Sold CHECK: COGAS - Ending Inventory = COGS A B C D E F G H J M N 0 P Q R S AE 15 Ending Inventory Date Explanation Units Unit Cost Total Cost ng 19 25 Units Total Cost Cost of Goods Sold Cost of goods available for sale Less: ending inventory Cost of Goods Sold CHECK: COGAS - Ending Inventory = COGS CHECK (of COGS): Date Explanation Units Unit Cost Total Cost 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 Do not round weighted average unit cost. Use an excel formula to calculate this amount and not a calculator. Periodic - Weighted Average Units Unit Cost Total Cost Perpetual - Weighted Average Purchases Date Units Cost Beg Inv Jan. 10 Cost of Goods Sold Cost Inventory Balance Cost Total Units Total Units Total Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold 15 CHECK: Units x Unit Cost 19 25 CHECK: COGAS - Ending Inventory = COGS