Great Adventures Problem AP6-1 (GL)

[The following information applies to the questions displayed below.]

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet wont damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $720 each.

Jul.		17		Purchased 83 watches for $12,450 ($150 per watch) on account.
Jul.		31		Sold 82 watches for $59,040 cash.
Aug.		12		Purchased 62 watches for $9,920 ($160 per watch) cash.
Aug.		22		Sold 52 watches for $37,440 on account.
Sep.		19		Paid for watches purchased on July 17.
Sep.		27		Receive cash of $22,464 for watches sold on account on August 22.
Oct.		27		Purchased 135 watches for $22,950 ($170 per watch) cash.
Nov.		20		Sold 112 watches for $80,640 cash.
Dec.		4		Purchased 122 watches for $21,960 ($180 per watch) on account.
Dec.		8		Sold 62 watches for $44,640 on account.

Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch.

1. Record each of the transactions listed above in the 'General Journal' prepare the journal entries for transactions.

Jul.

17

Purchased 83 watches for $12,450 ($150 per watch) on account.record the purchase of inventory on account.

Jul.

31

Sold 82 watches for $59,040 cash. record the sale of inventory for cash

Jul.

31

Sold 82 watches for $59,040 cash.record the cost of inventory sold.

Aug.

12

Purchased 62 watches for $9,920 ($160 per watch) cash.record the purchase of inventory for cash

Aug.

22

Sold 52 watches for $37,440 on account.record the sale

Aug.

22

Sold 52 watches for $37,440 on account.record the cost of the sale.

Sep.

19

Paid for watches purchased on July 17.record the payment for cash

Sep.

27

Receive cash of $22,464 for watches sold on account on August 22.record the receipt of cash for the sale.

Oct.

27

Purchased 135 watches for $22,950 ($170 per watch) cash.record the purchase of inventory for cash

Nov.

20

Sold 112 watches for $80,640 cash.record the sale of inventory for cash

Nov.

20

Sold 112 watches for $80,640 cash.record the cost of inventory sold

Dec.

4

Purchased 122 watches for $21,960 ($180 per watch) on account.record the purchase of inventory on account.

Dec.

8

Sold 62 watches for $44,640 on account.record the sale of inventory on account.

Dec.

8

Sold 62 watches for $44,640 on account.record the cost of inventory sold.

dec31. record the write down of inventory to net realizable value.

dec31.record the closure of revenue accounts.

dec31. record the closure of expense accounts.

example on how I need it:

Journal entry worksheet Record the closure of expense accounts. Note: Enter debits before credits. es Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal