Question: comprehensive problem, please help with journal entries for the 6 transactions, t accounts provided Bower Consulting Company started the period with cash of $25,000, 500
comprehensive problem, please help with journal entries for the 6 transactions, t accounts provided
| Bower Consulting Company started the period with cash of $25,000, 500 units of inventory with a cost of $20,000 (uses FIFO) , common stock of $20,000 and retained earnings of $25,000. Bower engaged in the following transactions in 2013: | |||||
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| Transactions during 2013 |
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| 1 | Purchased with cash 50 units of inventory for $2,500 |
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| 2 | Purchased on account 250 units of inventory for $14,000 |
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| 3 | Sold 750 units of inventory for $112,500. This was a cash sale |
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| 4 | Sold 10 units of inventory for $1,500. This was a cash sale |
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| 5 | Made a partial refund for 8 units to the customer who purchased the 10 units in the transaction above. |
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| Information for Adjusting Entries |
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| 6 | Bower carries only one type of inventory item. At year end the market value of each unit of inventory was $45 per unit. |
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| Re-evaluate the value of the ending inventory and prepare the necessary journal entry, assuming Bower applies the lower of cost or market rule to individual items |
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| Bower Consulting Company | |||
| General Journal, 2013 | |||
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| Event | Account Titles | Debit | Credit |
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