State College Technology Store is a retial computer store in the university center of a large midwestern university. The school engaged in the following transactions during January of the current year. At December 31 last year, the company’s inventory amounted to $150000. Jan. 8 Purchased 20 Nonpxe laptop computers on account from Led Inc. The laptop comptuers cost $800 each. Payment is due in 30 days Jan. 10 Sold 4 Nopxe laptop computers on account to the Department of Microbiology at State College at a retail sales price of $1200. Unit cost of each laptop was $1000. a) Prepare journal entries to record these transactions assumingthat the company uses periodic inventory system b. Compute the balance of the Inventory account on January 12 assuming that the company uses periodic inventory system. c. Compute the cost of goods sold assuming use of periodic inventory system.
State College Technology Store is a retial computer store in the university center of a large midwestern university. The school engaged in the following transactions during January of the current year. At December 31 last year, the company’s inventory amounted to $150000.
Jan. 8 Purchased 20 Nonpxe laptop computers on account from Led Inc. The laptop comptuers cost $800 each. Payment is due in 30 days
Jan. 10 Sold 4 Nopxe laptop computers on account to the Department of Microbiology at State College at a retail sales price of $1200. Unit cost of each laptop was $1000.
a) Prepare
b. Compute the balance of the Inventory account on January 12 assuming that the company uses periodic inventory system.
c. Compute the cost of goods sold assuming use of periodic inventory system.
d. To create year-end blance for cost of goods sold, please close the beginning inventory, purchases and ending inventory accounts assuming that the company uses periodic inventory system.
e. Prepare journal entries to record these transactions on January 8 and January 10 assuming that the company uses perpetual inventory system.
f. Suppose you have just opened your own coffee shop in Lefke. Would you use periodic or perpetual inventory system? Please explain in a couple of sentences.
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