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Kotsom Boli owns a Restaurant and sells furniture. One of the things he sells are chairs. The chairs cost $20 each to buy from the

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Kotsom Boli owns a Restaurant and sells furniture. One of the things he sells are chairs. The chairs cost $20 each to buy from the supplier and Kotsom sells the chairs for $35 each. At the start of May, there were 50 chairs on hand. The following events have occurred in the first week of May. (1) Paid the rent for the first week of May for $100 cash. The rent is paid at the start of every week. (2) Sold 5 chairs to a customer on credit. The customer has until the end of June to pay. Sold 6 chairs to a customer for cash. Purchased 10 more chairs from the supplier for cash. Sold 8 chairs to customers for cash. Purchased 15 more chairs from the supplier on credit. Kotsom has until the first week of June to pay. Sold 12 chairs to a customer on credit. The customer has 3 weeks to pay for the chairs. (8) Paid wages using cash for the first week of May of $250. At the end of the first week of May, the owner counted the chairs on hand and found there were still 44 chairs on hand that can be sold in the second week of May. At the end of the first week of May, the owner counted the chairs on hand and found there were still 44 chairs on hand that can be sold in the second week of May. REQUIRED: 1. Prepare the journal entries to account for all of the events above using the Periodic Inventory System (8 marks) 2. Prepare the journal entries to account for all of the events above using the Perpetual Inventory System (8 marks) 3. Prepare the income statement using the Periodic Inventory System (show how cost of sales was calculated) (2 marks) 4. Prepare the Income statement using the Perpetual Inventory System - Solutions to Test - Periodic System DATE ACCOUNTS Cre ttttttttttttt 2222222222222222 t 222222222222

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