AC 302 CHAPTER 8 QUESTION 9

AC 302 CHAPTER 8 QUESTION 9
Name				Date	
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E8-9 (Periodic versus Perpetual Entries) Chippewas Company sells one product. Presented below is information for January for Chippewas Company.						
						
	Jan 1	Inventory	100 	units at	$6.00 	each
	Jan 4	Sale	80 	units at	$8.00 	each
	Jan 11	Purchase	150 	units at	$6.50 	each
	Jan 13	Sale	120 	units at	$8.75 	each
	Jan 20	Purchase	160 	units at	$7.00 	each
	Jan 27	Sale	100 	units at	$9.00 	each
						
Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account.						
						
Instructions:						
"(a) Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including
     the end-of-month closing entry to record cost of goods sold. A physical count indicates that the"						
						
ending inventory for January is			110 	units.		
						
Jan 4	Account Title				Amount	
	Account Title					Amount
						
Jan 11	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 13	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 20	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 27	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 31	Text Title					Amount
	Text Title					
						Amount
	Text Title					Amount
	Text Title					Amount
						
(b) Compute the gross profit using the periodic system.						
						
	Text Title					Amount
						
	Text Title					Amount
	Text Title					Formula
						
(c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries.						
Jan 4	Account Title				Amount	
	Account Title					Amount
	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 11	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 13	Account Title				Amount	
	Account Title					Amount
	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 20	Account Title	900			Amount	
	Account Title		900			Amount
						
Jan 27	Account Title				Amount	
	Account Title					Amount
	Account Title	900			Amount	
	Account Title		900			Amount
						
(d) Compute the gross profit using the perpetual system.						
						
	Text Title					Amount
						
	Text Title					Amount
	Text Title					Formula