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15 March, 10:17

The following information is available for the Johnson Corporation: Beginning inventory $ 26,000 Inventory purchases (on account) 156,000 Freight charges on purchases (paid in cash) 11,000 Inventory returned to suppliers (for credit) 13,000 Ending inventory 31,000 Sales (on account) 251,000 Cost of inventory sold 149,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.

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  1. 15 March, 10:26
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    No Transaction General Journal Debit Credit

    Inventory = 155,0001

    Accounts payable = 155,000

    Inventory = 10,000

    Cash = 10,000

    Accounts payable = 12,000

    Inventory = 12,000

    Accounts receivable = 250,000

    Sales revenue = 250,000

    Cost of goods sold = 148,000

    Inventory = 148,000

    No journal entry required

    No

    Transaction General Journal Debit Credit Purchases

    inventory = 155,000

    Accounts payable = 155,000

    Freight-in = 10,000

    Cash = 10,000

    Accounts payable = 12,000

    Purchase returns = 12,000

    Accounts receivable = 250,000

    Sales revenue = 250,000

    No journal entry required Cost of goods sold = 148,000

    Inventory (ending) = 30,000

    Purchase returns = 12,000

    Inventory (beginning) = 25,000

    Purchases = 155,000

    Freight-in = 10,0005
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