Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended December 31. FFL adjusts its records only at year-end. January 6 Purchased and received 40 nutritional bars for $76, n/45. January 8 FFL sold 50 nutritional bars to Big Jim for $394 cash, which includes $37 of sales tax. April 30 FFL received $56,300 from Commerce Bank after signing a 24-month, 3 percent, promissory note. August 31 FFL signed a 6-month contract to sublease a portion of its building. FFL also received a $15,900 check for six months' rent. December 30 FFL paid employees' net pay through December 31, using direct deposits totaling $3,370, for 250 total hours at a $17 hourly wage. The company had withheld FICA of $325, United Way contributions of $150, and income tax of $405. December 31 FFL adjusted the accounts at year-end, relating to (a) employer payroll taxes, including FICA and $160 of unemployment taxes, (b) interest, and (c) rent. Required: 1. Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 40 nutritional bars at a unit cost of $2.25 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO. 2. For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended December 31. FFL adjusts its records only at year-end. January 6 Purchased and received 40 nutritional bars for $76, n/45. January 8 FFL sold 50 nutritional bars to Big Jim for $394 cash, which includes $37 of sales tax. April 30 FFL received $56,300 from Commerce Bank after signing a 24-month, 3 percent, promissory note. August 31 FFL signed a 6-month contract to sublease a portion of its building. FFL also received a $15,900 check for six months' rent. December 30 FFL paid employees' net pay through December 31, using direct deposits totaling $3,370, for 250 total hours at a $17 hourly wage. The company had withheld FICA of $325, United Way contributions of $150, and income tax of $405. December 31 FFL adjusted the accounts at year-end, relating to (a) employer payroll taxes, including FICA and $160 of unemployment taxes, (b) interest, and (c) rent. Required: 1. Calculate the cost of goods sold on January 8, assuming FFL began the year with an inventory of 40 nutritional bars at a unit cost of $2.25 ($90 total cost), had no other inventory transactions prior to January 6 and 8, and reports its inventory costs using FIFO. 2. For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
