**Step 3 of Milestone 1 ACC-201** Step Three: Complete the “September Journal En
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**Step 3 of Milestone 1 ACC-201**
Step Three: Complete the “September Journal Entries” tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the “Inventory Valuation” tab in your workbook and then copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting.
Updated Scenario: Many customers have been asking for more hypoallergenic products, so in September you start carrying a line of hypoallergenic shampoos on
a trial basis. The following information relates to the purchase and sales of the shampoo:
You use the perpetual inventory method. Although you could use the following valuation methods —FIFO, LIFO, or weighted average, you choose to use the FIFO method.
Data: The following events occur in September, 2018:
September 1: Paid dividends to self in amount of $10,000.
September 5: Pay employee for period ending 8/31.
September 7: Purchase merchandise for resale. See “Inventory Valuation” tab for details.
September 8: Receive payments from customers toward accounts receivable in amount of $4,000.
September 10: Pay August telephone bill.
September 11: Purchase baking supplies in amount of $7,000 from vendor on account.
September 13: Paid on supplies vendor account in amount of $5,000.
September 15: Accrue employee wages for period of September 1 through September 15.
September 15: Pay rent on bakery space: $1,500.
September 15: Record merchandise sales transaction. See “Inventory Valuation” tab for details.
September 15: Record impact of sales transaction on COGS and the inventory asset. See “Inventory Valuation” tab for details.September 20: Pay employee for period ending 9/15.
September 20: Purchase merchandise inventory for resale to customers. See “Inventory Valuation” tab for details.September 24: Record sales of merchandise to customers. See “Inventory Valuation” tab for details.
September 24: Record impact of sales transaction on COGS and the inventory asset. See “Inventory Valuation” tab for details.September 30: Purchase merchandise inventory for resale to customers. See “Inventory Valuation” tab for details.September 30: Accrue employee wages for period of September 16th through September 30th
September 30: Total September bakery sales are $20,000. $6,000 of these sales are on accounts receivable.
Wage calculation data:
Month
Hours
Rate
Pay
31 Jul.
10
12
120
15 Aug.
40
12
480
31 Aug.
35
12
420
15 Sep.
38
12
456
30 Sep.
40
12
480
INVENTORY VALUATION DATA
Month
Hours
Rate
Pay
31 Jul.
10
12
120
15 Aug.
40
12
480
31 Aug.
35
12
420
15 Sep.
38
12
456
30 Sep.
40
12
480
USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases Sales Ending Inventory Dr 60.00 Cr 10 6.00 60.00 10 6.0060.00 7-Sep 15-Sep 20-Sep 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 6.00 48.00 2 6.00$ 12.00 20 6.10 $122.00 2 6.00$ 12.00 20 6.10$ 122.00 $134.00 15-Sep Cash (8 x $8.50) 68.00 Merchandise Sales 68.00 Record sale of inventory 24-Sep 2 $ 6.0012.00 16 6.10 97.60 $109.60 15-Sep Cost of Goods Sold (8 X$6) 48.00 46.10 24.40 Merchandise Inventory Recorded thecost of goods sold 48.00 30-Sep 25 6.05 $151.25 46.10 24.40 25 $ 6.05$151.25 $175.65 $175.65 20-Sep Merchandise Inventory (20 x $6.10 ) 122.00 Cash 122.00 29 29 $333.25 26 $157.60 24-Sep Cash (18 x 8.50) 153.00 Merchandise Sales 153.00 Record sale of inventory 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) 109.60 Merchandise Inventory 109.60 Recorded thecost of goods sold 30-Sep Merchandise Inventory (25 x $6.05) 151.25 CashExplanation / Answer
Peyton Approved General Journal Sep - 18 Date Accounts Debit Credit $ $ Sep 1 Dividends 10,000 Cash 10,000 Sep 5 Salaries and Wages Expense 420 Cash 420 Sep 7 Merchandise Inventory 60 Cash 60 Sep 8 Cash 4,000 Accounts Receivable 4,000 Sep 10 Telephone Expense ??? Cash ??? Sep 11 Baking Supplies 7,000 Accounts Payable 7,000 Sep 13 Accounts Payable 5,000 Cash 5,000 Sep 15 Salaries and Wages Expense 456 Salaries and Wages Payable 456 Sep 15 Rent Expense 1,500 Cash 1,500 Sep 15 Cash 68 Merchandise Sales 68 Sep 15 Cost of Goods Sold 48 Merchandise Inventory 48 Sep 20 Merchandise Inventory 122 Cash 122 Sep 20 Salaries and Wages Payable 456 Cash 456 Sep 24 Cash 153 Merchandise Sales 153 Sep 24 Cost of Goods Sold 109.60 Merchandise Inventory 109.60 Sep 30 Merchandise Inventory 151.25 Cash 151.25 Sep 30 Salaries and Wages Expense 480 Salaries and Wages Payable 480 Sep 30 Cash 14,000 Accounts Receivable 6,000 Bakery Sales 20,000
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