Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you please correct the wrong ones (the ones with the red X) CPI sells computer peripherals. At December 31. year 1. CPI's inventory amounted
can you please correct the wrong ones (the ones with the red X)
CPI sells computer peripherals. At December 31. year 1. CPI's inventory amounted to $550,000. During the first week in January, year 2, the company made only one purchase and one sale. These transactions were as follows. Jan.2 Purchased 20 modems and 80 printers from Sharp. The total cost of these machines was $30,000, terme 3/10, 1/60. Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total sales price was $15,000, terms 5/10, n/90. The total cost of these 30 units to CPI was $9,600 (net of the purchase discount). CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Required: b. Prepare journal entries to record these transactions, assuming that CPI uses a perpetual Inventory system. c. Compute the balance in the Inventory account at the close of business on January 6. d. Prepare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system. e. Compute the cost of goods sold for the first week of January assuming use of the periodic system. (Use your answer to part c as the ending inventory.) 9. Compute the gross profit margin on the January 6 sales transaction. Complete this question by entering your answers in the table below. Required B Required Required D Required E Required G Prepare journal entries to record these transactions, assuming that CPI uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit Jan 02 Inventory 30,000 Accounts payable (Sharp) 30,000 1 2 Jan 06 15,000 Accounts receivable (Pace Corporation) Sales 15,000 3 Jan 06 9,600 Cost of goods sold Inventory 9,600 Required Required C > Required B Required C Required D Required E Required G Compute the balance in the Inventory account at the close of business on January 6. Inventory at close of business on Jan. 6 $ 570,400 Required B Required Required D Required E Required G Prepare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Date General Journal Debit Credit Purchases 30,000 Accounts payable (Sharp) 30,000 No 1 Jan 02 2 Jan 06 15,000 Accounts receivable (Pace Corporation) Sales 15,000 3 Jan 06 No journal entry required (Required C Required E > Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started