PERIODIC INVENTORY SYSTEM

! Required information [The following information applies to the questions displayed below.] Home Hardware reported beginning inventory of 25 shovels, for a total cost of $200. The company had the following transactions during the month: Jan. 2 Sold 7 shovels on account at a selling price of $13 per unit 16 Sold 10 shovels on account at a selling price of $13 per unit. 18 Bought 8 shovels on account at a cost of $8 per unit. 19 Sold 10 shovels on account at a selling price of $13 per unit 24 Bought 10 shovels on account at a cost of $8 per unit. 31 Counted inventory and determined that 15 units were on hand. Required: 1. Prepare the journal entries that would be recorded using a periodic inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1 Sold 7 shovels on account at a selling price of $13 per unit. Record the transaction. 2 Sold 10 shovels on account at a selling price of $13 per unit. Record the transaction 3 Bought 8 shovels on account at a cost of $8 per unit Record the transaction 4 Sold 10 shovels on account at a selling price of $13 per unit. Record the transaction. 5 Bought 10 shovels on account at a cost of $8 per unit. Record the transaction EX 4 Sold 10 shovels on account at a selling price of $13 per unit. Record the transaction 5 Bought 10 shovels on account at a cost of $8 per unit. Record the transaction 6 Record a journal entry that shows all goods initially on hand at the beginning of the period (in the Inventory account) and all goods bought during the period (in the purchases account) as having been sold by the end of the period 7 Record a journal entry that adjusts the accounting records to show that 15 units of inventory actually are still on hand (and should be recorded in the Inventory account) at the end of the period Note = journal entry has been entered Cost of Goods Sold