Consider the following July 2016 transactions for Lee Management Consulting, which were also presented in Chapter 5:
Jul. 2 Completed a consulting engagement and received cash of $7,200.
2 Prepaid three months’ office rent, $9,000.
7 Purchased 100 units of software inventory on account, $1,900, plus owed the manufacturer freight-in of $100.
16 Paid employee salary, $2,000. (Note previous year-end accrual of $500.)
18 Sold 70 software units on account, $3,100 (cost $1,400)
19 Consulted with a client for a fee of $900 on account.
21 Paid $2,000 on account for the July 7 purchase.
22 Purchased 200 units of software inventory on account, $4,600.
24 Paid utilities, $300 cash.
28 Sold 100 units of software for cash, $4,000.
31 Recorded the following adjusting entries:
Accrued salary expense, $1,000.
Prepaid rent used, $3,000.
Amortization of office furniture, $167, and of equipment, $42.
Physical count of inventory, 120 units, $2,713.
Required
1. Prepare perpetual inventory records for July for Lee Management Consulting using the moving-weighted-average perpetual method. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
2. Journalize and post to T-accounts the July transactions using the perpetual inventory record created in Requirement 1. Key all items by date. Use the opening balances given in Serial Exercise 5-27 on page 301. Compute each account balance, and denote the balance as Bal.
3. Journalize and post to T-accounts the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove that the debits equal the credits by completing a trial balance.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com