Journalize the Following Transactions for the Next Three Independent Situations

question 38

Essay

Journalize the following transactions for the next three independent situations.
Case 1
Gertrude Enterprises has determined that the replacement cost (current market value) of the December 31, 2014 ending inventory is $32,400.The inventory is recorded on the balance sheet at $33,500. What is the journal entry using the lower of cost or net realizable value rule?
Case 2
Austin's Jewellers carries a line of silver bracelets. Austin's Jewellers uses the FIFO method and a perpetual inventory system. The sales price of each bracelet is $105. Company records indicate the following activity for the bracelets for the month of March: Purchases of 200 units on January 1 at a cost of $30 per unit and purchases of 400 units on February 1 at a cost of $33 per unit. Sold 300 units on account on February 25. Journalize the sale of 300 units.
Case 3
On January 2, 2014, Bright Lights purchased showroom fixtures for $10,000 cash, expecting the fixtures to remain in service for five years. Bright Lights has depreciated the fixtures on a straight-line basis, with zero residual value. On September 30, 2015, Bright Lights sold the fixtures for $5,000 cash. Record both
the depreciation expense on the fixtures for 2015 and the sale of the fixtures on September 30, 2015.

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Definitions:

Voluntary Employee Turnover

Occurs when employees choose to leave their jobs, whether for personal reasons, better employment opportunities, or dissatisfaction with their current roles.

Low Pay

Compensation for work that is significantly lower than the average wage for a particular job or sector.

High Compensation

Refers to the offering of a salary and benefits package that is significantly above the market rate to attract and retain top talent.

Affirmative Action Programs

Policies and procedures designed to combat discrimination and promote diversity in the workplace or educational settings by giving preferential treatment to traditionally marginalized groups.