This problem continues the Daniels Consulting situation from Problem P5-45 in Chapter 5. Consider the January transactions for Daniels Consulting that were presented in Chapter 5. Daniels uses the perpetual inventory system.
Jan. 2 Completed a consulting engagement and received cash of $5,700.
2 Prepaid three months office rent, $2,400.
7 Purchased 50 units software inventory on account, $1,050, plus freight in, $50.
18 Sold 40 software units on account, $2,625.
19 Consulted with a client for a fee of $2,500 on account.
20 Paid employee salaries, $1,885, which includes accrued salaries from December.
21 Paid on account, $1,100.
22 Purchased 185 units software inventory on account, $4,810.
24 Paid utilities, $375.
28 Sold 135 units software for cash, $5,265.
31 Recorded the following adjusting entries:
a. Accrued salaries expense, $775
b. Depreciation on Equipment, $60; Depreciation on Furniture, $50
c. Expiration of prepaid rent, $800
d. Physical count of software inventory, 50 units
Requirements
1. Prepare perpetual inventory records for January for Daniels using the FIFO inventory costing method.
2. Journalize the transactions for January 18th, 28th, and 31st (adjusting entry d only) using the perpetual inventory record created in Requirement 1.