Requirement 1. Prepare perpetual inventory records for January for Drake using the FIFO inventory costing method. (Note: You must calculate the cost of goods sold on the 18th, 28th, and 31st.) Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Units Total Units Total Inventory on Hand Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Jan. 7 85 18 22 200 28 Drake Consulting performs systems consulting and has the following post-closing balances at December 31, 2016. (Click the icon to view the post-closing balances.) The company has also begun selling accounting software and uses the perpetual inventory system to account for software inventory. During January, Drake Consulting completed the following transactions and opened the following accounts. i (Click the icon to view the transactions.) (Click the icon to view the new accounts and opening balances.) Read the requirements. Reference Cash Bal. 21,550 Accounts Payable Service Revenue 3,850 Bal. 0 Bal. Accounts Receivable Unearned Revenue Rent Expense Bal. 2,000 2,500 Bal. Bal. Office Supplies Salaries Payable Utilities Expense Bal. 400 750 Bal. Bal. 0 Equipment Common Stock Supplies Expense Bal. 600 18,000 Bal. Bal. 0 Accumulated Depr.-Equipment Furniture Bal. 3,600 10 Bal. Accumulated Depr.-Furniture 60 Bal. Retained Earnings Dividends Bal. 2,980 Bal. Bal. Salaries Expense 0 Depreciation Expense-Equipment Bal. Depreciation Expense-Furniture Bal. 0 More info Jan. 2 Completed a consulting engagement and received cash of $9,100. 2 Prepaid three months office rent, $7,200. 7 Purchased 85 units software inventory on account, $1,735, plus freight in, $50. 18 Sold 30 software units on account, $2,400. 19 Consulted with a client for a fee of $2,600 on account. 20 Paid employee salaries, $2,250, which includes accrued salaries from December. 21 Paid on account, $1,630. 22 Purchased 200 units software inventory on account, $5,800. 24 Paid utilities, $400. 28 Sold 130 units software for cash, $7,150. 31 Recorded the following adjusting entries: a. Accrued salaries expense, $750 b. Depreciation on Equipment, $10; Depreciation on Furniture, $60 c. Expiration of prepaid rent, $2,400 d. Physical count of software inventory, 111 units More info Software Inventory, $0; Prepaid Rent, $0; Sales Revenue, $0; Cost of Goods Sold, $0 Requirements 1. Prepare perpetual inventory records for January for Drake using the FIFO inventory costing method. (Note: You must calculate the cost of goods sold on the 18th, 28th, and 31st.) 2. Journalize the transactions for January 18th, 28th, and 31st (adjusting entry d only) using the perpetual inventory record created in Requirement 1