A Company That Uses a Perpetual Inventory System Made the Following

question 88

Essay

A company that uses a perpetual inventory system made the following cash purchases and sales.There was no beginning inventory.
Prepare the general journal entry to record the March 16 sale,assuming the weighted average method is used.

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Definitions:

Paid-In Capital

Refers to the amount of capital "paid in" by investors during common or preferred stock issuances, including the excess over the par value.

Reissued

Refers to items or securities that are sold or distributed again after being previously issued.

Treasury Stock

Stocks that were initially released and then bought back by the company that issued them, decreasing the number of available shares in the market.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.