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Problem 1 : P6-39

Background: This problem continues the Canyon Canoe Company situation from Chapter 5. At the beginning of January 2019, Canyon Canoe Company decided to carry and sell T-shirts with its logo on them. Canyon Canoe Company uses the perpetual inventory system and accounts for its merchandise using the FIFO inventory costing method. Canyon Canoe Company's February transactions related to merchandise inventory are included in the Transactions section below. Canyon Canoe Company began February with merchandise inventory consisting of 94 T-shirts costing $5 each.

Assignment:

1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction.

2) Click the Reports tab and review the results of recording these transactions on the General Ledger.

3) Under the Reports tab, review the Trial Balance generated as a result of these transactions.

4) Click Submit Work when complete.

Transactions:

02/02/2019 Sold 60 T-shirts at $10 each on account. Terms, n/30. (Must calculate Cost of Goods Sold. Record two separate entries)

02/05/2019 Purchased 50 T-shirts on account for $6 each. Terms n/EOM.

02/07/2019 Sold 45 T-shirts for $10 each receiving cash. (Must calculate Cost of Goods Sold. Record two separate entries)

02/08/2019 Sold 20 T-shirts for $10 each on account. Terms n/30. (Must calculate Cost of Goods Sold. Record two separate entries)

02/10/2019 Canyon Canoe Company realized the inventory was running low, so it placed a rush order and purchased 20 T-shirts. The premium cost for these shirts was $7 each, and Canyon paid cash.

02/12/2019 Placed a second rush order, purchasing 40 T-shirts at $7 each on account. Terms n/EOM.

02/13/2019 Sold 20 T-shirts for $10 each, receiving cash. (Must calculate Cost of Goods Sold. Record two separate entries)

02/15/2019 Purchased 50 T-shirts for $6 each on account. Terms n/30.

02/20/2019 In order to avoid future rush orders, purchased 150 T-shirts on account. Due to the volume of the order, Canyon Canoe Company was able to negotiate a cost of $5 each. Terms, n/30.

02/21/2019 Sold 40 T-shirts for $10 each, receiving cash. (Must calculate Cost of Goods Sold. Record two separate entries)

02/22/2019 Sold 35 T-shirts for $10 each on account. Terms n/EOM. (Must calculate Cost of Goods Sold. Record two separate entries)

02/24/2019 Sold 20 T-shirts for $10 each, receiving cash. (Must calculate Cost of Goods Sold. Record two separate entries)

02/25/2019 Sold 45 T-shirts for $10 each, receiving cash. (Must calculate Cost of Goods Sold. Record two separate entries)

02/27/2019 Sold 40 T-shirts for $10 each on account. Terms n/30. (Must calculate Cost of Goods Sold. Record two separate entries)

*I need to imput this data into journal entries.

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