Prepare the journal entries that would be recorded using periodic inventory system:

1. (Jan. 6) Sold 50 shovels on account at a selling price of $50 per unit.

2. (Jan. 9) Bought 40 shovels on account at a selling price of $40 per unit.

3. (Jan. 11) Sold 40 shovels on account at a cost of $55 per unit.

4. (Jan. 19) Sold 50 shovels on account at a selling price of $60 per unit.

5. (Jan. 27) Bought 40 shovels on account at a cost of $40 per unit.

6. (Jan. 31) 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. (Jan. 31) Record a journal entry that adjusts the accounting records to show that 20 units of inventory actually are still on hand (and should be recorded in the Inventory account) at the end of the period.

Prepare the journal entries that would be recorded using a perpetual inventory system, including any "book-to-physical" adjustment that might be needed:

1. (Jan. 6) Record the sales revenue on account.

2. (Jan. 6) Record the cost of goods sold.

3. (Jan. 9) Record the purchase of inventory on account.

4. (Jan. 11) Record the sales revenue on account.

5. (Jan. 11) Record the cost of goods sold.

6. (Jan. 19) Record the sales revenue on account.

7. (Jan. 19) Record the cost of goods sold.

8. (Jan. 27) Record the purchase of inventory on account.

9. (Jan. 31) Record the book to physical adjustment.

#3

The following Information appliles to the questions displayed below Sigfusson Supplies reported beginning inventory of 120 units, for a total cost of $4,800. The company had the following transactions during the month Jan. 6 Sold 50 shovels on account at a selling price of $50 per unit. 9 Bought 40 shovels on account at a selling price of $40 per unit. 11 Sold 40 shovels on account at a cost of $55 per unit. 19 Sold 50 shovels on account at a selling price of $60 per unit. 27 Bought 40 shovels on account at a cost of $40 per unit. 31 Counted inventory and determined that 20 units were on hand