E8-9 (Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented
below is information for January for Fong Sai-Yuk Company.
|
Jan 1
|
Inventory
|
100
|
units at
|
$5.00
|
each
|
|
Jan 4
|
Sale
|
80
|
units at
|
$8.00
|
each
|
|
Jan 11
|
Purchase
|
150
|
units at
|
$6.00
|
each
|
|
Jan 13
|
Sale
|
120
|
units at
|
$8.75
|
each
|
|
Jan 20
|
Purchase
|
160
|
units at
|
$7.00
|
each
|
|
Jan 27
|
Sale
|
100
|
units at
|
$9.00
|
each
|
Fong
Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on
account.
Instructions
(a) Assume
Fong Sai-Yuk uses a periodic system. Prepare all necessary journal entries,
including
the end-of-month closing entry to record cost of goods sold. A physical count
indicates that the ending inventory for January is 110 units.
(b) Compute
the gross profit using the periodic system.
(c) Assume
Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.
(d) Compute
the gross profit using the perpetual system.
TUTORIAL
PREVIEW
|
Jan 4
|
Accounts Receivable
|
640
|
|
|
Sales Revenue (80 units × $8.00 each)
|
640
|
||
|
Jan 11
|
Purchases (150 units × $6.00 each)
|
900
|
|
|
Accounts Payable
|
900
|
||
File name: E8-9 Fong Sai-Yuk.xls File
type: .xls PRICE: $7
