question archive Accounting records for Lyons Corporation yield the following data for the year ended June 30, 2014: Inventory, June 30, 2013
Accounting records for Lyons Corporation yield the following data for the year ended June 30, 2014: Inventory, June 30, 2013
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Accounting records for Lyons Corporation yield the following data for the year ended June 30, 2014:
Inventory, June 30, 2013.......................................................................... $15,000
Purchases of inventory (on account)......................................................... 68,000
Sales of inventory—83% on account; 17% for cash (cost $57,000).........115,000
Inventory at FIFO, June 30, 2014............................................................ 26,000
Requirements
1. Journalize Lyons’ inventory transactions for the year under the perpetual system.
2. Report ending inventory
, sales, cost of goods sold, and gross profit on the appropriate financial statement.
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Req. 1
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Perpetual System |
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1. |
Purchases: |
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Inventory................................................................................ |
68,000 |
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Accounts Payable............................................................. |
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68,000 |
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2. |
Sales: |
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Cash ($115,000 × .17)............................................................ |
19,550 |
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Accounts Receivable ($115,000 × .83).................................. |
95,450 |
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Sales Revenue |
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115,000 |
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Cost of Goods Sold............................................................... |
57,000 |
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Inventory.......................................................................... |
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57,000 |
Req. 2
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BALANCE SHEET |
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Current assets: |
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Inventory............. |
$26,000 |
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INCOME STATEMENT |
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Sales revenue............ |
$115,000 |
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Cost of goods sold......... |
57,000 |
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Gross profit............. |
$58,000 |
