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Jan. 1 beginning inventory 300 units @ 10.00 = $3,000
Jan. 10 sales (units sold at retail) 165 units @$18.00
Jan. 20 purchase 370 units @ $9.00=3,330
Jan. 25 Sales (units sold at retail) 295 units @ $18.00
Jan. 30 Purchase 240 units @$8.00=1920
Totals = 910 units $8,250 and 460 units
Laker Company uses a perpertual inventory system. For specific identification, ending inventory consists of 450 units, where 240 are from the January 30 purchase, 8- are from the January 20 purchase, and 130 are from beginning inventory.
Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as trading. Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as available for-sale.
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