Mod 4 Problems question 1 I need help with requirements 1-3 please; below is all

Question

Mod 4 Problems question 1

I need help with requirements 1-3 please; below is all info given for problems

Requirements 1. Journalize the total January purchases in one summary entry. All purchases were on credit 2.Journalize the total January sales and cost of goods sold in two summary entries. The selling price was $600 per unit, and all sales were on credit. Assume that Richmond, Inc., uses the FIFO inventory method. 3. Under FIFO, how much gross profit would Richmond, Inc., earn on these transactions? What is the FIFO cost of Richmond, Inc.'s ending inventory? Requirement 1. Journalize for Richmond total January purchases in one summary entry. All purchases were on credit. Record debits first, then credits. Explanations are not required.) Journal Entry Data Table Date Accounts Debit Credit 4 units @ $155 =S 620 Jan 1 Beginning inventory. 4 units @ S155 -S 620 5 units @ 155 =S 775 9 units @ 165 =$1.485 15 Purchase.... PrintDone

Explanation / Answer

Date

Accounts

Debit

Credit

1

Purchases

2260

Trade Payables

2260

2

Trade Receivables

10800

Sales

10800

3

Cost of Goods Sold

2880

Income Statement

2880

Gross profit = Sales – Cost of Goods sold

10800 – 2880 = $7920

Cost of Ending Inventory using FIFO

Number of units sold is not given thus it is assumed that all units were sold thus no ending inventory will be here.

Date

Accounts

Debit

Credit

1

Purchases

2260

Trade Payables

2260

2

Trade Receivables

10800

Sales

10800

3

Cost of Goods Sold

2880

Income Statement

2880

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