I need help gathering the information in an excell sheet. What should this look like as a journal entry? Updated Scenario: Many customers have been
I need help gathering the information in an excell sheet. What should this look like as a journal entry?
Updated Scenario: Many customers have been asking for more hypoallergenic products, so in September you start carrying a line of hypoallergenic shampoos on
a trial basis. The following information relates to the purchase and sales of the shampoo:
You use the perpetual inventory method. Although you could use thefollowing valuation methods FIFO, LIFO, or weighted average, you choose to use the FIFO method.
Data: The following events occur in September, 2018: September 1: Paid dividends to self in amount of $10,000. September 5: Pay employee for period ending 8/31. September 7: Purchase merchandise for resale. See Inventory Valuation tab for details. September 8: Receive payments from customers toward accounts receivable in amount of $4,000. September 10: Pay August telephone bill. September 11: Purchase baking supplies in amount of $7,000 from vendor on account. September 13: Paid on supplies vendor account in amount of $5,000. September 15: Accrue employee wages for period of September 1 through September 15. September 15: Pay rent on bakery space: $1,500. September 15: Record merchandise sales transaction. See Inventory Valuation tab for details. September 15: Record impact of sales transaction on COGS and the inventory asset. See Inventory Valuation tab for details.September 20: Pay employee for period ending 9/15. September 20: Purchase merchandise inventory for resale to customers. See Inventory Valuation tab for details.
September 24: Record sales of merchandise to customers. See Inventory Valuation tab for details.
September 24: Record impact of sales transaction on COGS and the inventory asset. See Inventory Valuation tab for details.September 30: Purchase merchandise inventory for resale to customers. See Inventory Valuation tab for details.September 30: Accrue employee wages for period of September 16th through September 30th
September 30: Total September bakery sales are $20,000. $6,000 of these sales are on accounts receivable.
Wage Calculation Data:
FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases Sales Dr 0$ 6.00 $ 60.00 7-Sep 15-Sep 20-Sep 10 6.00$ 60.00 7-Sep Merchandise Inventory (10 x $6) 60.00 Cash 60.00 8 $6.00$ 48.00 26.0012.00 Purchased inventory 20 6.10122.00 2 15-Sep Cash (8x$8.50) 6.00 12.00 20 6.10 122.00 $ 134.00 68.00 Merchandise Sales 68.00 Record sale of in 24-Sep 26.00$12.00 16 $ 6.10 97.60 5109.60 15 Sep Cost of Goods Sold (8 X$6 48.00 4 $ 6.10$24.40 Merchandise Inventory Recorded the cost of goods sold 48.00 30-Sep 25 6.05151.25 4 6.1024.40 25 $ 6.05 151.25 $ 175.65 $175.65 20-Sep Merchandise Inventory (20 x $6.10) 122.00 Cash 122.00 29 $333.25 26 $157.60 29 24-Sep Cash (18x8.50) 153.00 Merchandise Sales Record sale of inventory 153.00 24-Sep Cost of Goods Sold (2 x $6)+ (16 x $6.10) 109.60 Merchandise Inventory 109.60 Recorded the cost of goods sold 30 Sep Merchandise Inventory (25 x $6.05) 151.25 151.25Step by Step Solution
There are 3 Steps involved in it
Step: 1
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