Question
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
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:
- Detailed inventory records/worksheet;
- Journal entries for all transactions;
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