GENERAL JOURNAL

Date Account Titles and Explanation P.R. Debit

4-Apr Purchase racquets and balls from supplier
Purchases 924
AP
6-Apr Paid freight on purchase
Freight-in 74
Cash
8-Apr Sold merchandise to customer
AR 1,564
Sales revenue
10-Apr Received credit from supplier
AP 60
Purchase returns and allowances
11-Apr Purchase tennis shoes from supplier
Purchases 364
Cash
13-Apr Paid supplier
AP 864
Purchase discounts
Cash
14-Apr Purchase tennis shirts and shorts from supplier
Purchases 700
AP
15-Apr Received cash refund from supplier
Cash 90
Purchase returns and allowances
17-Apr Paid freight on purchase
Freight-in 25
Cash
18-Apr Sold merchandise to customer
AR 1,864
Sales revenue
20-Apr Received cash from customer
Cash 500
AR
21-Apr Paid supplier
AP 700
 Purchase discounts
Cash
27-Apr Granted an allowance for customer
Sales returns and allowances 25
AR
30-Apr Received cash from customer
Cash 630
AR
30-Apr End of period entries
Inventory (Ending) 2,140
COGS 2,121
Purchase discounts 40
Purchase returns and allowances 150
Freight-in
Purchases
Inventory (Opening)
Page 1 Unadjusted TB
Account titles
Debit Credit
Credit CASH 2,397
AR 2,273
INVENTORY 2,140
924 AP -
SHARE CAPITAL 5,528
RETAINED EARNING
74
INCOME SUMMARY

SALES REVENUE 3,428

1,564 SALES RETURNS AND ALLOWANCES 25
COGS 2,121
SUB TOTAL 8,956 8,956
60 NET INCOME (PROFIT OR LOSS)
FINAL TOTAL

364

26
838

700

90

25

1,864

500 MSSV : K214051664

 14
686

25

630

99
1,988
2,364
 Adjustments (3) Adjusted TB (4) Income statement (5)BS and Statement OClosing entries (7)
Debit Credit Debit Credit Debit Credit Debit Credit Debit
2,397 2,397
1,673 1,673
2,140 2,140
- -
5,528 5,528

2,146
682
2,828 2,828 2,828
25 25
2,121 2,121
8,356 8,356 2,146 2,828 6,210 5,528 5,656
682 682
2,828 6,210

Village tennis shop Village tennis shop

Income statement Retained earnings statement
For the month ended April 30, 2020 For the month ended April 30, 2020
SALES REVENUES 2,828 RE, opening -
SALES RETURNS AND AL (25) Add:
COGS (2,121) Contribution capital
Net income 682 Net income 682
Less:
Dividends -
RE, ending 682

MSSV : K214051664 664

3 số cuối: 1664
4 số cuối:
Closing entries (7) Post-closing TB (8)
Credit Debit Credit
2,397
1,673
2,140
-
5,528
682 682
2,828

25
2,121
5,656 6,210 6,210

Village tennis shop

Statement of financial position
At the month ended April 30, 2020
Assets: (liquidity increases)
INVENTORY 2,140
AR 1,673
CASH 2,397
Total Assets: 6,210
Equity & Liabilities: (solvency increases)
Equity:
SHARE CAPITAL 5,528
RETAINED EARNINGS 682
Liabilities:
AP -
Total E&L: 6,210
 Village tennis shop
Post-closing TB
At the month ended April 30, 2020
Debit Credit
CASH 2,397
INVENTORIES 2,140
AR 1,673
AP -
SHARE CAPITAL 5,528
RETAINED EARNI 682
TOTAL 6,210 6,210
a.
FIFO
Date Purchases Sells
1-May 32,200
4-May 18,400
8-May 40,800
12-May 24,000
15-May 33,120
20-May 15,300
25-May 26,340
84,040
COGS

Moving average cost

Date Purchases Sells
1-May 32,200
4-May 18,400
8-May 40,800
12-May 24,818
15-May 33,120
20-May 15,726
25-May 26,209
85,153
COGS

b. FIFO produces higher ending inventory valuatio

Moving average cost produces lower ending inv
FIFO
Balance
32,200
13,800
54,600
30,600
63,720
48,420
22,080
22,080
Ending inventory

average cost
Balance Unit cost
32,200
13,800 4,600
54,600
29,782 4,964
62,902
47,176 5,242
20,967 5,242
20,967
Ending inventory

ng inventory valuation
uces lower ending inventory valuation
a. FIFO
Date Purchases Sells
31-Dec
2-Jan 2,100
6-Jan 2,850
9-Jan (190)
9-Jan 1,800
10-Jan (360)
10-Jan 1,030
23-Jan 2,600
30-Jan 3,740
7,430
COGS

Sales 15,850
COGS 7,430
Gross profit 8,420
b.
*With FIFO, COGS is less than COGS of moving a
the gross profit of FIFO is higher than the gross pro
IFO Moving average cost
Balance Date Purchases Sells Balance Unit cost
2,850 31-Dec 2,850
4,950 2-Jan 2,100 4,950
2,100 6-Jan 2,970 1,980 19.8
2,290 9-Jan (198) 2,178
4,090 9-Jan 1,800 3,978
3,730 10-Jan (360) 3,618
2,700 10-Jan 1,064 2,554 21.28
5,300 23-Jan 2,600 5,154
2,080 30-Jan 3,747 1,407 23.42
2,080 7,583 1,407
Ending inventory COGS Ending inventory

Sales 15,850
< COGS 7,583
> Gross profit 8,267

an COGS of moving average cost, so

gher than the gross profit of moving average cost.
a.
FIFO Average-cost Unit cost
Sales 10,900 10,900 26.3
Ending inventory 1,260 1,185
COGS 7,430 7,505
Gross profit 3,470 3,395
Gross profit rate 32% 31%

b. *With FIFO, COGS is less than COGS of Average-cost, so

the gross profit of FIFO is higher than the gross profit of Average-cost.
*FIFO and Average-cost have the same value of Sales, but
the gross profit of FIFO is higher than the gross profit of Average-cost, so
the gross profit rate of FIFO is higher than the gross profit of Average-cost.
Average-cost.

Average-cost, so
fit of Average-cost.
 Item Unit The lower of cost or net realizable value
Camaras
Minolta 8 156,000
Canon 6 150,000
Light meters
Vivitar 12 115,000
Kodak 14 115,000
Total ending inventory
 Value

1,248,000
900,000

1,380,000
1,610,000
5,138,000
 2019 2020
Beginning inventory 20,000 28,000
Cost of goods purchased 150,000 175,000
Cost of goods available for sale 170,000 203,000
Ending inventory 28,000 41,000
Cost of goods sold (correct cost) 142,000 162,000