Perpetual inventory program examples essay

QUESTION 1 )

Alpha Corporation is a promoting company that sells pc parts. Alpha dog Corporation runs on the perpetual inventory system.

The following deals were finished by the business during Summer 2010:

06 7 Bought 25 Ergonomia monitors coming from Office Store on bank account at a unit cost of one-hundred dollar. June on the lookout for Sold 6 Ergonomia watches to Computer system World Inc. on take into account $350 each. June 11 Sold 10 Ergonomia displays to Finest Corporation for $3, two hundred cash. 06 15 Acquired 20 Ergonomia monitors by Office Shop on bank account at one hundred dollar each. June 16Paid the accounts payable for the purchases in June six.

June nineteen Sold 12 Ergonomia monitors to Milkyway Company in account. The overall sales cost was $3, 700. 06 26 Gathered accounts receivable from the revenue on Summer 19. June 30 Paid out the accounts payable intended for the buys on June 15.

Essential:

a. Make the log entries to record these transactions b. Assume First uses regular inventory system. Prepare record entries pertaining to the ventures using regular inventory program.

QUESTION 2 .

Smart Furniture Corporation is actually a merchandising firm that provides chairs. The corporation uses a everlasting inventory program. It records sales with the gross invoice price and purchases by net price. Smart Home furniture adjusts and closes the accounts month-to-month. The followings are the ventures in March 2009:

Mar 1 Clever Furniture acquired 50 business chairs by Comfort Firm on consideration. Unit expense of these chair was $100, terms 3/10, n/30. Marly 3 Offered 40 business chairs upon account to Sweet Brand name $200 each, terms 2/10, n/30. Mar 8 Nice Home returned five business chairs purchased on March 3. The amount is lowered from the consideration receivable of Sweet House. Mar twelve Purchased 60 executive ergonomic chairs from Convenience Company in account. Unit cost of these types of chairs was $100, terms 3/10, n/30. Mar 11Returned 10 exec chairs to Comfort Company because we were holding in the wrong color. Scar 12 Collected accounts receivable from the revenue on March 3 within the discount period. Mar 15 Sold 15 executive seats for in account to Alpha Redecorating, unit sales price was $220, credit terms 2/10, n/30. Scar 19Paid the accounts payable of 03 10 purchase within lower price period. Marly 25 Paid out the accounts payable to get the buys on Mar 1 . Marly 30 Collected accounts receivable from the revenue on Mar 15.

Required:

a. Prepare the log entries to record these transactions. m. Prepare the subsidiary inventory ledger business chairs to get the month.

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