7-12 homework Astrologer only

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Answer 1 These mixers will be considered as inventory as they are for sale in ther state.
Answer 2 Perpetual system should be used as it will help in keeping the track of the inventory. This method is generally used at grocery store which uses codes and optical scanner to keep a daily running reord if every box that it buys and sells.
Answer 3 The inventory will be conunted on every sale and purchase.
Journal Entries
Date Account Debit Credit
Jan-04 Merchandise Inventory 2875
Accounts payable 2875
Jan-06 Merchandise Inventory 100
Cash 100
Jan-07 Accounts Payable 575
Cash 20
Merchandise Inventory 595
Jan-08 Cash 450
Accounts Receivable 450
Jan-12 Accounts Receivable 3450
Sales revenue 3450
Jan-12 Cost of goods sold 1785
Merchandise Inventory 1785
Jan-13 Telephone expenses payable 75
Cash 75
Jan-14 Freight out 75
Cash 75
Jan-14 Merchandise Inventory 2300
Accounts Payable 2300
Jan-17 Cash 1000
Common Stock 1000
Jan-18 Merchnadise Inventory 80
Cash 80
Jan-20 Cash 2300
Sales Revenue 2300
Jan-20 Cost of goods sold 1190
Merchandise Inventory 1190
Jan-28 Salary expenses 160
Salary payable 56
Cash 216
Jan-28 Cash 3450
Accounts Recevible 3450
Jan-31 Accounts Payable 4600
Cash 4600
Jan-31 Dividend paid 75
Cash 75
Adjusting Entry
Jan-31 Depreciation 20
Accumulated Depreciation 20
Jan-31 Amortization Expenses 17
Accumulated amortization 17
Jan-31 Interest expenses 23
Interest payable 23
Jan-31 Interest Expenses 100
Prepaid Insurance 100
Jan-31 Telephone Expenses 75
Telephone expenses payable 75

Ledger

Cash
Beginning balance 1340 Jan-06 100
Jan-07 20 Jan-13 75
Jan-08 450 Jan-14 75
Jan-17 1000 Jan-18 80
Jan-20 2300 Jan-28 216
Jan-28 3450 Jan-31 4600
Jan-31 75
Ending 3339
8560 8560
Merchndise Inventory
Jan-04 2875 Jan-09 595
Jan-06 100 Jan-12 1785
Jan-14 2300 Jan-20 1190
Jan-18 80 Ending 1785
5355 5355
Accounts Payable
Jan-07 575 Beginning 75
Jan-31 4600 Jan-04 2875
Ending 75 Jan-14 2300
5250 5250
Accounts Receivable
Beginning 1450 Jan-08 450
Jan-12 3450 Jan-28 3450
Ending 1000
4900 4900
Sales Revenue
Jan-12 3450
Jan-20 2300
5750
Freight out
Jan-14 75
75
Cost of goods sold
Jan-12 1785
Jan-20 1190
2975
Dividend paid
Jan-31 75
75
Salary Expenses
Jan-28 160
160

Trial balance

Trial Balance
Debit Credit
Cash 3339
Accounts Recievable 1000
Baking Supplies 350
Merchandise Inventory 1785
Advertising Supplies 50
Baking Equipment 1200
Accumulated Depreciation 40
Prepaid Insurance 1100
Notes payable 2000
Interest payable 23
Website 575
Cost of goods sold 2975
Unearned Service Revenue 360
Sales revenue 5750
Freight out 75
Common Stock 1800
Retained Earnings 2711
Salary Expenses 160
Dividend paid 75
12684 12684
Unearned Service Revenue 360
Common Stock 800
Retained Earnings 2,711
Totals - 3,871

Adjusted trial balance

Adjusted Trial Balance
Debit Credit
Cash 3339
Accounts Recievable 1000
Baking Supplies 350
Merchandise Inventory 1785
Advertising Supplies 50
Baking Equipment 1200
Accumulated Depreciation 60
Prepaid Insurance 1000
Depreciation expenses 20
Insurance Expenses 100
Notes payable 2000
Interest Expenses 23
Interest payable 46
Amortization Expenses 17
Website 558
Cost of goods sold 2975
Unearned Service Revenue 360
Sales revenue 5750
Freight out 75
Common Stock 1800
Retained Earnings 2711
Telephone Expenses 75
Telephone Expenses payable 75
Salary Expenses 160
Dividend paid 75
12802 12802

Income Statement

Sales Revenue 5750
Less: Cost of goods sold 2975
Gross Profit 2775
Operating Expenses
Depreciation expenses 20
Insurance Expenses 100
Amortization Expenses 17
Freight out 75
Salary Expenses 160
Telephone Expenses 75 447
Operating Income 2328
Other expenses and revenue
Interest Expense 23
Net Profit 2305

Retained Earnings

Statement of Retained Earnings
Beginning retained Earnings 2711
Add: Net income 2305
5016
Less: Dividend 75
Ending retained earning 4941

Balance sheet

Balance Sheet
ASSETS
Current Assets
Cash 3,339
Accounts Receivable 1,000
Baking Supplies 350
Advertising Supplies 50
Merchandise Inventory 1,785
Prepaid Insurance 1,000
Total Current Assets 7,524
Plant Assets
Baking Equipment 1,200
Accumulated Depreciation (60) 1,140
Website 558
Total Assets 9,222
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Telephone Expenses payable 75
Interest Payable 46
Unearned Service Revenue 360
Total Current Liabilities 481
Long Term Liabilities
Notes Payable 2,000
Total Liabilities 2,481
Stockholders Equity
Common Stock 1,800
Retained Earnings 4,941
Total Stockholders Equity 6,741
Total Liabilities and Stockholders Equity 9,222