Consider the December transactions for Shine King Cleaning that were presented in Chapter 5. (Cost data has been removed from the sale transactions.)
Dec 2 Purchased 600 units of inventory, $3,600, from Sparkle, Co., on terms, 3/10, n/20. 5 Purchased 400 units of inventory from Borax on terms 4/5, n/30. The total invoice was for $3,200, which included a $200 freight charge.
7 Returned 100 units of inventory to Sparkle from the December 2 purchase.
9 Paid Borax.
11 Sold 350 units of goods to Happy Maids for $4,900 on terms 5/10, n/30.
12 Paid Sparkle.
15 Received 30 units with a retail price of $420 of goods back from customer Happy Maids.
21 Received payment from Happy Maids, settling the amount due in full.
28 Sold 200 units of goods to Bridget, Inc., for cash of $3,000.
29 Paid cash for Utilities of $350.
30 Paid cash for Sales commission expense of $225.
31 Recorded these adjusting entries:
Physical count of Inventory on December 31 revealed 330 units of goods on hand.
Depreciation, $170.
Accrued salary expense of $700.
Prepared all other adjustments necessary for December.
Requirements
1. Prepare perpetual inventory records for December for Shine King using the FIFO method. (Note: You must figure cost on the 11th, 28th, and 31st.)
2. Journalize and post the December transactions using the perpetual inventory record created in Requirement 1. Key all items by date. Compute each account balance, and denote the balance as Bal.
3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits in the ledger.