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Clay pooll Hardwares is only hardware store in a remote area of northern Minnesota. Some of Claypools tranactions during the current year are as followed:
Claypools personnel counted the inventory on hand and determined its cost to be $182,080. The accounting records however, indicate inventory of 183,790 and a cost of goods sold of $695,222. The physcial count of inventory was observed by the company's auditors and is considered correct.
<2 Part question>
A.Prepare joural entries to record theses transactions and events in the accounting records of Claypool Hardware.
B.Prepare a partial income statement showing the companies Gross profit for the year. (Net Sales for the year amount to $1,024,900.
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