Need help 1. 2.

Cambridge Technologies Inc. began 2020 with Inventory of $18,000. During the year, Cambridge purchased Inventory costing $90,000 and gold goods for $140,000, with all transactions on account. Cambridge ended the year with Inventory of $29,000. Cambridge prepared the following journal entries under the periodic inventory system at year end B (Click the icon to view the journal entries.) Requirements 1. Post to the Inventory and Cost of Goods Sold accounts. 2. Compute cost of goods sold by the cost-of-goods-sold model. 3. Prepare the December 2020 income statement of Cambridge Technologies Inc. through gross profit. Journal entries Requirement 1. Post the beginning balancels) and all entries to the Inventory and Cost of Goods Sold accounts. (Leave any unused cells blank.) Journal Entry Inventory Cost of Goods Sold Accounts Debit Credit Beg bail 90,000 90,000 End bal End bal. 140,000 JE 1 Purchases Accounts Payable JEZ Accounts Receivable Sales Revenue JE3 Cost of Goods Sold Inventory Requirement 2. Compute cost of goods sold by the cost-of-goods-sold model. 140.000 18,000 7 18,000 JF4 Inventory 29,000 Plus: Goods available Less: Cost of goods sold 29,000 Cost of Goods Sold JES Cost of Goods Sold 90,000 Purchases 90,000 Requirement 3. Prepare the December 2020 income statement of Cambridge Technologies Inc. through gross profit Cambridge Technologies Inc. Income Statement For the Year Ended December 31, 2020 Print Done 1 LI Groee profil Requirement 1. Post the beginning balance(s) and all entries to the Inventory and Cost of Goods Sold accounts. (Leave any unused cells blank.) Inventory Cost of Goods Sold Beg bal. End bal. ompute cost of goods sold by the cost-of-goods-sold model. Beg bal. JE1 JE2 JE3 | JE4 repare the December 2020 income statement of Cambridge Technologies Inc. through gross profit. JE5 Cambridge Technologies Inc. Income Statement For the Year Ended December 31, 2020 Gross profit Inventory Transactions Units Unit Cost Unit Sale Price Oct. 2 Sale 13 $ $ 36 $ 64 Oct. 9 Purchase 79 38 - - - - - Oct. 13 Sale 33 36 64 Oct. 18 Sale 9 38 65 Oct. 22 Sale 38 38 65 Oct. 29 Purchase 18 40 Print Done Assume a Cross Country Sports outlet store began October 202D with 45 pairs of water skis that cost the store $35 each. The sale price of these water skis was $64. During October, the store completed these inventory transactions: Click the icon to view the inventory transactions.) Requirements 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. 2. Determine the store's cost of goods sold for October. Also compute gross profit for October What is the cost of the store's October 31 inventory of water skis? Assume that ending inventory declined $225. What value would the company report as inventory on the balance sheet7 Include in your answer why it chose that value. How would it account for this difference? 3 4 Requirement 1. Which cost method does the store use? Explain how you arrived at your answer. Cross Country Sports uses FIFO beginning inventory This is how FIFO, and only FIFO, works. This is apparent from the flow of costs out of Inventory. For example, the October 13 sale shows unit cost of $36, which came from the Requirement 2. Determine the store's cost of goods sold for October. Also compute gross profit for October The cost of goods sold is $ The gross profit for October is $7. Requirement 3. What is the cost of the store's October 31 inventory of water skis? The cost of the company's inventory at October 31 is $ Requirement 4. Assume that ending inventory declined by $225. What value would the company report as inventory on the balance sheet? Indude in your answer why it chose that value. How would it account for this difference? The company would report ending inventory at because the requires inventory to be reported in the financial statements at Account for this difference by preparing the necessary joumal entry. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit