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Required information Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were 2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060. Problem 8-1 (Static) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No 1 Date October 12 General Journal Inventory Accounts payable 2 October 12 Interest payable Cash 38 Debit Credit 21,560 21,560 500 500 3 October 31 Accounts payable 21,560 Interest expense Cash × 440 22,000 4 October 31 Accounts receivable 28,000 Sales revenue 28,000 6 October 31 Inventory × 19,060X Cost of goods sold × 18,000X Inventory × 15,000X Purchases Freight-in 21,560X 500X

Required information Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were 2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060. Problem 8-1 (Static) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No 1 Date October 12 General Journal Inventory Accounts payable 2 October 12 Interest payable Cash 38 Debit Credit 21,560 21,560 500 500 3 October 31 Accounts payable 21,560 Interest expense Cash × 440 22,000 4 October 31 Accounts receivable 28,000 Sales revenue 28,000 6 October 31 Inventory × 19,060X Cost of goods sold × 18,000X Inventory × 15,000X Purchases Freight-in 21,560X 500X

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.5BE: Periodic inventory using FIFO, UFO, and weighted average cost methods The units of an item available...
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2 Required information Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were 2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060. Problem 8-1 (Static) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No 1 Date General Journal October 12 Inventory Accounts payable 3 Debit 21,560 Credit 21,560 2 October 12 Interest payable 500 Cash 500 3 October 31 Accounts payable Interest expense Cash 4 October 31 Accounts receivable Sales revenue 3 33 383 21,560 440 22,000 28,000 28,000 6 October 31 Inventory Cost of goods sold X 19,060X 18,000X Inventory 15,000X Purchases × 21,560X Freight-in × 500X
Transcribed Image Text:2 Required information Problem 8-1 (Static) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $22,000 on October 12. Terms of the purchase were 2/10 /30 Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060. Problem 8-1 (Static) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No 1 Date General Journal October 12 Inventory Accounts payable 3 Debit 21,560 Credit 21,560 2 October 12 Interest payable 500 Cash 500 3 October 31 Accounts payable Interest expense Cash 4 October 31 Accounts receivable Sales revenue 3 33 383 21,560 440 22,000 28,000 28,000 6 October 31 Inventory Cost of goods sold X 19,060X 18,000X Inventory 15,000X Purchases × 21,560X Freight-in × 500X
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