Date Transaction details

June 30 Ending inventory of 20 rakes, each costing $5, owners equity of $3,000, accounts payable of $200, cash is only remaining asset.

July 1 Bought 50 rakes, $10 each, on account, 2/10, n/30 from Supplier Who.

July 1 Later in the day, TQ negotiated a $100 allowance as the rake handles were the wrong thickness.

July 2 Sold 10 rakes for total of $400 to Customer ABC, received cash.

July 4 TQ bought a riding lawn mower for $4,000. Expected life is 5 years. Payment due in 30 days.

July 5 Bought 5 rakes, $12 each. Paid for rakes with cash.

July 7 Sold 40 rakes for $25 each to Customer DEF, granted payment terms of 2/15, n/30.

July 9 Customer DEF returned 2 rakes purchased July 7. Both were broken. Customer wanted cash reimbursement for 1 rake & a new rake in exchange for the other. The customer also requested a reduction in price on the other 38 rakes purchased as they were not working as well as promised. TQ Landscaping reduced the selling price to $20 for these 38 rakes.

July 11 Payment of $400 is made on the July 1 purchase of rakes.

July 14 Received payment of $1,000 for 4 months of future landscaping services for XYZ Realty Co.

July 15 Provided landscaping to UFV. Charged UFV $200. Terms 2/20, n/60. Used one of the company rakes purchased on July 5. Somehow, the rake got lost on the way back to company offices.

July 16 Payment of $400 is received on the July 7 sale to Customer DEF.

July 22 Bought 15 rakes, $20 each, 3/10, n/16. Rakes were delivered to TQ by courier. Courier charges were $30; courier was paid with a company check.

July 24 Returned 2 of the 15 rakes bought on July 22.

July 30 Completed landscaping for XYZ Realty Co as required for July.

July 31 Inventory count of rakes at month end shows only 2 rakes are left in inventory.

Provide the following under a perpetual inventory record system using the FIFO, not MVA:

1. Detailed inventory records/worksheet;
2. Journal entries for all transactions;