Accounting I

PR1-CH5

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEK 10 - Homework Assignment (CH5)
Assignment due by Sunday, October 22, 2023
Sales-related transactions, including the use of credit cards (Obj. 2)
Journalize entries for the following related transactions of Lilly Heating & Air Company:
		a.	Sold merchandise for cash, $25,000. The cost of goods sold was $17,500.
									Debit	Credit
			Cash						- 0	- 0
			Sales						- 0	- 0
			Cost of Goods Sold						- 0	- 0
			Inventory						- 0	- 0
		b.	Sold merchandise on account, $98,000. The cost of goods sold was $58,800.
									Debit	Credit
			Accounts Receivable						- 0	- 0
			Sales						- 0	- 0
			Cost of Goods Sold						- 0	- 0
			Inventory						- 0	- 0
		c.	Sold merchandise to customers who used MasterCard and VISA, $475,000. The cost of goods sold
			was $280,000.
									Debit	Credit
			Cash						- 0	- 0
			Sales						- 0	- 0
			Cost of Goods Sold						- 0	- 0
			Inventory						- 0	- 0
		d.	Sold merchandise to customers who used American Express, $63,000. The cost of goods sold
			was $39,000.
									Debit	Credit
			Cash						- 0	- 0
			Sales						- 0	- 0
			Cost of Goods Sold						- 0	- 0
			Inventory						- 0	- 0
		e.	Received an invoice from National Clearing House Credit Co. for $13,450, representing a
			service fee paid for processing MasterCard, VISA, and American Express sales.
									Debit	Credit
			Credit Card Expense						- 0	- 0
			Cash						- 0	- 0

PR1-CH6

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEK 10 - Homework Assignment (CH6)
Assignment due by Sunday, October 22, 2023
Periodic inventory by three methods (Obj. 2,3)
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period ending June 30:
						Number	Per
			Date		Transaction	of Units	Unit	Total
			Apr	3	Inventory	25	$ 1,200	$ 30,000
				8	Purchase	75	1,240	93,000
				11	Sale	40	2,000	80,000
				30	Sale	30	2,000	60,000
			May	8	Purchase	60	1,260	75,600
				10	Sale	50	2,000	100,000
				19	Sale	20	2,000	40,000
				28	Purchase	80	1,260	100,800
			June	5	Sale	40	2,250	90,000
				16	Sale	25	2,250	56,250
				21	Purchase	35	1,264	44,240
				28	Sale	44	2,250	99,000
Instructions:
	1	Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the
		first-in, first-out method and the periodic inventory system.
			Inventory:		Units in beginning inventory and purchased					- 0
					Less Units sold					- 0
					Units in ending inventory					- 0
					x Last Purchase unit price					$ - 0
					Inventory, June 30					$ - 0
			Cost of goods sold:
					Beginning inventory, April 1					$ - 0
					Purchases					- 0
					Goods available for sale					$ - 0
					Less Ending inventory, June 30					- 0
					Cost of goods sold					$ - 0
	2	Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the
		last-in, first-out method and the periodic inventory system.
			Inventory:		Units		Unit Price
					- 0	x	$ - 0			$ - 0	Note:Remember you have 26 units
					- 0	x	$ - 0			- 0
					Inventory, June 30					$ - 0
			Cost of goods sold:
					Beginning inventory, April 1					$ - 0
					Purchases					- 0
					Goods available for sale					$ - 0
					Less Ending inventory, June 30					- 0
					Cost of goods sold					$ - 0
	3	Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the
		weighted average cost method and the periodic inventory system. Round the weighted average unit cost
		to the dollar.
		Weighted Average Unit Cost = Total Cost of goods available for sale/Units available for sale
					=	$ - 0	/	- 0
					=	$ - 0
			Inventory:		Units		Unit Price
					- 0	x	$ - 0	=	$ - 0	Inventory, June 30
			Cost of goods sold:
					Beginning inventory, April 1					$ - 0
					Purchases					- 0
					Goods available for sale					$ - 0
					Less Ending inventory, June 30					- 0
					Cost of goods sold					$ - 0