Home Hardware reported beginning inventory of twenty sixshovels, for a total cost of $156. The company had the followingtransactions during the month:
| Jan. | | 2 | | Sold 8 shovels on account at a selling price of $14 perunit |
| | 16 | | Sold 14 shovels on account at a selling price of $14 perunit |
| | 18 | | Bought 9 shovels on account at a cost of $6 per unit |
| | 19 | | Sold 12 shovels on account at a selling price of $14 perunit |
| | 24 | | Bought 14 shovels on account at a cost of $6 per unit |
| | 31 | | Counted inventory and determined that 11 units were onhand |
Required:
1. Prepare the journal entries that would berecorded using a periodic inventory system. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)
A.Sold 8 shovels on account at a selling priceof $14 per unit
B.Sold 14 shovels on account at a selling price of $14 perunit
C.Bought 9 shovels on account at a cost of $6 per unit
D.Sold 12 shovels on account at a selling price of $14 perunit
E.Bought 14 shovels on account at a cost of $6 per unit
F. Record the cost of goods sold
G.Record the inventory on hand based on inventory count
2. Prepare the journal entries that would berecorded using a perpetual inventory system, including anybook-to-physical adjustment that might be needed. (If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)
A. Record the sale of shovels.
B.Record the cost of shovels sold.
C.Record the sale of shovels.
D. Record the cost of shovels sold.
E. Record the purchase of shovels.
F. Record the sale of shovels.
G.Record the cost of shovels sold.
H.Record the purchase of shovels.
I.Record the entry for book-to-physical adjustment, if any.
3-a. What is the dollar amount of shrinkagethat you were able to determine in requirement 1? (Enter"0" if you were unable to determine the dollar amount ofshrinkage.)
Amount of shrinkage -
3-b. What is the dollar amount of shrinkagethat you were able to determine in requirement 2? (Enter"0" if you were unable to determine the dollar amount ofshrinkage.)
Amount of shrinkage -
3-a. What is the dollar amount of shrinkagethat you were able to determine in requirement 1? (Enter"0" if you were unable to determine the dollar amount ofshrinkage.)
