On December 1, 2017, Annalise Company had the account balancesshown below.
Debit Credit Cash $6,800 Accumulated DepreciationâEquipment$1,400
Accounts Receivable 3,900 Accounts Payable 2,900
Inventory 1,500 * Ownerâs Capital 29,700
*(3,000 x $0.50)
Equipment 21,800
$34,000 $34,000
The following transactions occurred during December:
Dec. 3 Purchased 4,200 units of inventory on account at a costof $0.70 per unit.
Dec. 5 Sold 4,700 units of inventory on account for $0.92 perunit. (It sold 3,000 of the $0.50 units and 1,700 of the$0.70.)
Dec. 7 Granted the December 5 customer $92 credit for 100 unitsof inventory returned costing $100. These units were returned toinventory.
Dec. 17 Purchased 2,300 units of inventory for cash at $0.78each. 22 Sold 2,100 units of inventory on account for $0.97 perunit. (It sold 2,100 of the $0.70 units.) Adjustment data: 1.Accrued salaries payable $400. 2. Depreciation $200 per month.
(e) Compute ending inventory and cost of goods sold under FIFO,assuming Annalise Company uses the periodic inventory system.
Ending Inventory ?
Cost of Goods Sold ?
(f) Compute ending inventory and cost of goods sold under LIFO,assuming Annalise Company uses the periodic inventory system.
Ending Inventory ?
Cost of Goods Sold ?
On December 1, 2017, Annalise Company had the account balancesshown below.
Debit Credit Cash $6,800 Accumulated DepreciationâEquipment$1,400
Accounts Receivable 3,900 Accounts Payable 2,900
Inventory 1,500 * Ownerâs Capital 29,700
*(3,000 x $0.50)
Equipment 21,800
$34,000 $34,000
The following transactions occurred during December:
Dec. 3 Purchased 4,200 units of inventory on account at a costof $0.70 per unit.
Dec. 5 Sold 4,700 units of inventory on account for $0.92 perunit. (It sold 3,000 of the $0.50 units and 1,700 of the$0.70.)
Dec. 7 Granted the December 5 customer $92 credit for 100 unitsof inventory returned costing $100. These units were returned toinventory.
Dec. 17 Purchased 2,300 units of inventory for cash at $0.78each. 22 Sold 2,100 units of inventory on account for $0.97 perunit. (It sold 2,100 of the $0.70 units.) Adjustment data: 1.Accrued salaries payable $400. 2. Depreciation $200 per month.
(e) Compute ending inventory and cost of goods sold under FIFO,assuming Annalise Company uses the periodic inventory system.
Ending Inventory ?
Cost of Goods Sold ?
(f) Compute ending inventory and cost of goods sold under LIFO,assuming Annalise Company uses the periodic inventory system.
Ending Inventory ?
Cost of Goods Sold ?
Related questions
Comprehensive Problem 7 (Part Level Submission)
On December 1, 2017, Fullerton Company had the following account balances.
| Debit | Credit | |||||
| Cash | $18,200 | Accumulated DepreciationâEquipment | $3,000 | |||
| Notes Receivable | 2,200 | Accounts Payable | 6,100 | |||
| Accounts Receivable | 7,500 | Common Stock | 50,000 | |||
| Inventory | 16,000 | Retained Earnings | 14,400 | |||
| Prepaid Insurance | 1,600 | $73,500 | ||||
| Equipment | 28,000 | |||||
| $73,500 |
During December, the company completed the following transactions.
| Dec. 7 | Received $3,600 cash from customers in payment of account (no discount allowed). | |
| 12 | Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30. | |
| 17 | Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000. | |
| 19 | Paid salaries $2,200. | |
| 22 | Paid Vance Co. in full, less discount. | |
| 26 | Received collections in full, less discounts, from customers billed on December 17. | |
| 31 | Received $2,700 cash from customers in payment of account (no discount allowed). |
Adjustment data:
| 1. | Depreciation $200 per month. | |
| 2. | Insurance expired $400. |
Enter the December 1 balances in the ledger T-accounts and post the December transactions I need to make a T-account chart
