Calculate fost of goods sold and ending inventory and analyze effect of each method on financial statements. Jefferson company had the following sales and purchases during 2011, its first year of business:
January 5 Purchased 40 units at $100 each
February 15 Sold 15 units at $150 each
April 10 Sold 10 units at $150 each
June 30 Purchased 30 units at $105 each
August 15 Sold 25 units at $150 each
November 28 Purchased 30 untis at $110 each
Solution
Part A: Record the effect of the following transactions on the accounting equation assuming LIFO perpetual:
Transactions in January, 2011:
Assets
Liabilities
Shareholders
.
Calculate fost of goods sold and ending inventory and analyze effect o (1).docx
1. Calculate fost of goods sold and ending inventory and analyze effect of each method on financial
statements. Jefferson company had the following sales and purchases during 2011, its first year
of business:
January 5 Purchased 40 units at $100 each
February 15 Sold 15 units at $150 each
April 10 Sold 10 units at $150 each
June 30 Purchased 30 units at $105 each
August 15 Sold 25 units at $150 each
November 28 Purchased 30 untis at $110 each
Solution
Part A: Record the effect of the following transactions on the accounting equation assuming
LIFO perpetual:
Transactions in January, 2011:
Assets
Liabilities
Shareholders
Transactions in January, 2011: Assets Liabilities Shareholders
