Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 27

Accounting for inventory using the perpetual system-FIFO
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 5-42 in Chapter 5. Consider the June transactions for Lawlor Lawn Service that were presented in Chapter 5. (Cost data has been removed from the sale transactions):

Requirements
1. Prepare perpetual inventory records for June for Lawlor using the FIFO method. (Note: You must figure cost on the 15th, 25th, and 30th.)
2. Journalize and post the June transactions using the perpetual inventory record created in Requirement 1. Key all items by date. Compute each account balance, and denote the balance as Bal.
3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits ' in the ledger.