Journal Entries:

September 1- paid dividends to self in amount of $3000
September 5-pay employee for period ending 8/31
September 7-Purchase merchandise for resale. See inventory valuation tab for details.
September 8- Receive payments from customers toward accounts receivable in amount of $4000
September 10- pay August telephone bill
September 11-purchase baking supplies in amount of $ 7,000 from vendor on account.
September 13- Paid on supplies vendor account in amount of $5000
September 15- Accrue employee wages for period of September 1st through September 15th
September 15- Pay rent on bakery space $1500
September 15-Record merchandise sales transaction. See inventory valuation tab for details.
September 15-Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details.
September 20- Pay employee for period ending 9/15
September 20-Purchase merchandise inventory for resale to customers. See inventory valuation tab for details.
September 24- Record sales of merchandise to customers. See inventory valuation tab for details.
September 24- Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details.
September 30- Purchase merchandise inventory for resale to customers. See inventory valuation tab for details.
September 30-Accrue employee wages for period of September 16th through September 30th
Total September bakery sales $25,000. $6,000 of these sales on accounts receivable.

Accounts:
Asset:

101 Cash
102 Baking Supplies
103 Prepaid rent
104 Prepaid insurance
105 Baking equipment
106 Misc Supplies
107 Accounts receivable
108 Accumulated Depreciation

Equity:

301 Common Stock
302 Dividends
Revenue:
401 Bakery Sales
402 Merchandise Sales

Expense:

501 Baking supplies expense
502 Rent Expense
503 Insurance Expense
504 Misc. Expense
505 Bus. license expense
506 Advertising expense
507 wages expense
508 telephone expense
509 interest expense
510 depreciation expense
511 misc supplies expense

Liability:

201 notes payable
202 accounts payable
203 wages payable
204 interest payable
Inventory Valuation Tab:

FIFO

Purchases Date Purchases Sales Ending Inventory Dr Cr 9/7: 10 bottles purchased at $6 7-Sep 10 $6.00 $60.00 10 $6.00 $60.00 7-Sep Merchandise Inventory (10 x $6) 60.00 9/20: 20 bottles purchased at $6.10 Cash 60.00 9/30: 25 bottles purchased at $6.05 15-Sep 8 $6.00 $48.00 2 $6.00 $12.00 Purchased inventory Sales - selling price, $8.50 a bottle 9/15: 8 bottles 20-Sep 20 $6.10 $122.00 2 $6.00 $12.00 15-Sep Cash (8 x $8.50) 68.00 9/24: 18 bottles 20 $6.10 $122.00 Merchandise Sales Revenue 68.00 22 $134.00 Record sale of inventory 24-Sep 2 $6.00 $12.00 15-Sep Cost of Goods Sold (8 X $6) 48.00 16 $6.10 $97.60 4 $6.10 $24.40 Merchandise Inventory 48.00 $109.60 Recorded the cost of goods sold 30-Sep 25 $6.05 $151.25 4 $6.10 $24.40 20-Sep Merchandise Inventory (20 x $6.10 ) 122.00 25 $6.05 $151.25 Cash 122.00 29 $175.65 55 $333.25 26 $157.60 29 $175.65 24-Sep Cash (18 x 8.50) 153.00 Merchandise Sales Revenue 153.00 Record sale of inventory 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) 109.60 Merchandise Inventory 109.60 Recorded the cost of goods sold 30-Sep Merchandise Inventory (25 x $6.05) 151.25 Cash 151.25

LIFO

Purchases Sales Ending Inventory 7-Sep Merchandise Inventory (10 x $6) 60.00 7-Sep 10 $6.00 $60.00 10 $6.00 $60.00 Cash 60.00 Purchased inventory 15-Sep 8 $6.00 $48.00 2 $6.00 $12.00 15-Sep Cash (8 x $8.50) 68.00 20-Sep 20 $6.10 $122.00 2 $6.00 $12.00 Merchandise Sales Revenue 68.00 20 $6.10 $122.00 Record sale of inventory 22 $134.00 15-Sep Cost of Goods Sold (8 X $6) 48.00 24-Sep 18 $6.10 $109.80 2 $6.00 $12.00 Merchandise Inventory 48.00 2 $6.10 $12.20 Record inventory reduction due to sale 4 $24.20 20-Sep Merchandise Inventory (20 x $6.10) 122.00 30-Sep 25 $6.05 $151.25 2 $6.00 $12.00 Cash 122.00 2 $6.10 $12.20 25 $6.05 $151.25 24-Sep Cash (18 x 8.50) 153.00 29 $175.45 Merchandise Sales Revenue 153.00 55 $333.25 26 $157.80 29 $175.45 Record sale of inventory 24-Sep Cost of Goods Sold (18 x $6.10) 109.80 Merchandise Inventory 109.80 Record inventory reduction due to sale 30-Sep Merchandise Inventory (25 x $6.05) 151.25 Cash 151.25

weighted average

Purchases Sales Ending Inventory 7-Sep Merchandise Inventory (10 x $6) 60.00 7-Sep 10 $6.00 $60.00 10 $6.00 $60 Cash 60.00 Purchased inventory 15-Sep 8 $6.00 $48.00 2 $6.00 $12.00 15-Sep Cash (8 x $8.50) 68.00 20-Sep 20 $6.10 $122.00 2 $6.00 $12.00 Merchandise Sales Revenue 68.00 20 $6.10 $122.00 per unit Record sale of inventory 22 $134.00 $6.09 15-Sep Cost of Goods Sold (8 X $6) 48.00 24-Sep 18 $6.09 $109.62 4 $24.38 Merchandise Inventory 48.00 Record inventory reduction due to sale 30-Sep 25 $6.05 $151.25 4 $24.38 25 $6.05 $151.25 20-Sep Merchandise Inventory (20 x $6.10) 122.00 55 $333.25 26 157.62 29 $175.63 $6.06 Cash 122.00 24-Sep Cash (18 x 8.50) 153.00 Merchandise Sales Revenue 153.00 Record sale of inventory 24-Sep Cost of Goods Sold (18 x $6.09) 109.62 Merchandise Inventory 109.62 Record inventory reduction due to sale 30-Sep Merchandise Inventory (25 x $6.05) 151.25 Cash 151.25