Whispering Winds Company buys merchandise on account from Ay

Whispering Winds Company buys merchandise on account from Ayayai Company for $710 n . Whispering Winds sells the goods to Elis for $1,230 cash. Use a tabular summary to record the transactions for Whispering Winds Company using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets Liabilities+ Stockholders Equity Retained Earnings Rev. Accts. Common Cash +Inv. Pay Stock Exp.

Solution

Tabular summary to record the transactions for Whispering Winds Company using perpetual inventory system Assets = Liabilities + Stockholders Equity Journal entries under Perpetual Inventory system Retained Earnings Cash + Inventory = Accounts Payable + Common stock + Rev. - Exp. Event Account Title Debit Credit $0.00 + $710.00 = $710.00 + $0.00 + $0.00 - $0.00 Purchases a Inventory $710.00 $1,230.00 + $0.00 = $0.00 + $0.00 + $1,230.00 - $0.00 Sales Accounts Payable $710.00 $0.00 + -$710.00 = $0.00 + $0.00 + $0.00 - $710.00 Cost of goods sold (recording of on account purchase of inventory) b Cash $1,230.00 Sales $1,230.00 (recording of cash sales) c Cost of goods sold $710.00 Inventory $710.00 (recording of cost of goods sold)