pter 6 GL > Practice Set This problem continues the Shine King Cleaning problem begun in Chapter 2 and continued through Chapter 5. P6-47 Accounting for inventory using the perpetual inventory system-FIFO Consider the December transactions for Shine King Cleaning that were presented in Chapter 5. (Cost data have been removed from the sale transactions.) Shine King uses the perpetual inventory system. Dec. 2 5 7 Purchased 600 units of inventory for $3,600 from Sparkde, Co, on terms, 3/10, n/20. Purchased 400 units of inventory from Borax on account with terms 4/5, n/30. The total invoice was for $3,200, which included a $200 freight charge Returned 100 units of inventory to Sparkle from the December 2 purchase. 9 Paid Borax 11 12 15 21 28 29 30 31 Sold 350 units of goods to Happy Maids for $4,900 on account with terms 5/10, 1/30 Paid Sparkle Received 30 units with a retail price of $420 of goods back from customer Happy Maids Received payment from Happy Maidh, settling the amount due in full Sold 200 units of goods to Bridget, Inc, for cash of $3,000 Paid cash for Utilities of $350 Paid cash for Sales Commission Expense of $225. Recorded the following adjusting entries a Physical count of inventory on December 31 showed 330 units of goods on hand b. Depreciation, $170 c. Accrued salaries expense of $700 d. Prepared all other adjustments necessary for December (Hint: You will need to review the adjustment information in Chapter 3 to determine the remaining adjustments). Assume the deaning supplies left at December 31 are $50 Requirements 1. Prepare perpetual inventory records for December for Shine King using the FIFO inventory costing method. (Note: You must calculate the cost of goods sold on the 11th, 28th, and 31st.) 2. Open the following T-accounts in the ledger: Cash, $73,100; Accounts Receivable, $2,000, Merchandise Inventory, $0, Cleaning Supplies, $50; Prepaid Rent, $1,500, Prepaid Insurance, $2,200; Equipment, $2,200; Truck, $8,000, Accumulated Depreciation, $170, Accounts Payable, $945; Uncamed Revenue, $3,450, Salaries Payable, $0, Interest Payable, $100; Notes Payable (Long term), $40,000; Hudson, Capital, $44,385; Hadson, Withdrawals, $0; Income Summary, $0, Service Revenue, $0; Sales Revenue, $0, Sales Returns and Allowances, $0; Sales Discounts, $0, Cost of Goods Sold, $0, Sales Commission Expense, $0, Utilities Expense, $0, Depreciation Expense, $0, Salaries Expense, $0 Insurance Expense, $0, Rent Expense, $0; Interest Expense, $0. 3. Journalize and post the December transactions using the perpetual inventory record created in Requirement 1. Coinpute each account balance, and denote the balance as Bal 4. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. Compute each account balance, and denote the balance as Bal After posting all adjusting entries, prove the equality of debits and credits in the ledger.