accounting

Task: Summative Final Assignment

· This is an assignment to be done individually.

· You must answer all the questions in the proposed problem.

· Submission file format: Word document with all the answers, clearly identifying all steps, results, journals, ledger accounts and including comments

when requested. Submission: Week 13– Via Moodle (Turnitin). Deadline: 9 May 2021 at 23:59. Weight: This task is a 40% of your total grade for this subject.

This task assesses the following learning outcomes:

· Understand how to process a Sale journal in a merchandising company

· Understand COGS and inventory

· Learning how to record sales with different inventory methods

Problem 1 :

Kenay Clothes sells sportwear. At March 31, 2020 the company’s inventory was 32,000 EUR. During first Quarter of 2020, Kenay Clothes made only 1 purchase and 1 sale. The transactions were as follows.

February 06 Sold 1 batch of T-shirt for 12,000 EUR cash., the original cost for these T-shirts to the company was 5,000 EUR. March 10 Purchased 2 batch of sweatshirts from Nikira, The total cost of this purchased amounted to 4.000 EUR , credit terms 2/10, n/30 ( Kenay

Clothes should book the purchase of merchandise at a net cost)

Instructions

Assume that Kenay Clothes uses a perpetual inventory system.

1. Prepare journal entries to record these transactions

1. Sales transaction (20 points)

2. Purchased transaction (20 points)

Problem 3

In April 23, 2018 , Whistle returns 7.000 EUR worth of merchandise to Mecredy Company because the wrong merchandise was received. This merchandise cost Mecredy Company 4.000 EUR

Instructions

Please prepare the necessary journals to reflect those transactions in Mercredy books as of April 23, 2018 (15 points)