The following information is available for the Johnson Corporation: Beginning inventory $ 26,000 Inventory purchases (on account) 156,000 Freight charges on purchases (paid in cash) 11,000 Inventory returned to suppliers (for credit) 13,000 Ending inventory 31,000 Sales (on account) 251,000 Cost of inventory sold 149,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.

Explanation:

No Transaction General Journal Debit Credit

Inventory = 155,0001

Accounts payable = 155,000

Inventory = 10,000

Cash = 10,000

Accounts payable = 12,000

Inventory = 12,000

Accounts receivable = 250,000

Sales revenue = 250,000

Cost of goods sold = 148,000

Inventory = 148,000

No journal entry required

No

Transaction General Journal Debit Credit Purchases

inventory = 155,000

Accounts payable = 155,000

Freight-in = 10,000

Cash = 10,000

Accounts payable= 12,000

Purchase returns = 12,000

Accounts receivable = 250,000

Sales revenue = 250,000

No journal entry required Cost of goods sold = 148,000

Inventory (ending) = 30,000

Purchase returns = 12,000

Inventory (beginning) = 25,000

Purchases = 155,000

Freight-in = 10,0005