Accounting Transactions and Inventory Management - Parc Design and Mandy Co.

Analysis of Accounts and Balances

Peter started a business “Parc Design” on 1 January 2019. During the first month of operations,  the business completed five transactions which resulted in the following:
Note payable $50,000
Supplies 2,000
Service revenue 10,000
Cash 55,000
Accounts receivable 5,000
Accounts payable 2,200
Utility expense 200
All the accounts have normal balances.
(a) Analyse the accounts and their balances and describe five (5) transactions that is most likely to result in those balances.
(b) Journalise the transactions of Parc Design.
(c) Prepare the statement of financial position of Parc Design at 31 January 2019. Mandy Company uses a perpetual inventory system. It recorded the following information for  January.
Jan 1 Beginning inventory of 50 units at $120 per unit.
Jan 3 Purchased 60 units at $130 per unit
Jan 5 Sold 40 units at $200 per unit
Jan 10 Purchased 100 units at $150 per unit
Jan 12 Returned 30 units purchased on Jan 10
Jan 20 Sold 80 units at $220 per unit
(a) Compute the cost of goods sold and ending inventory cost under FIFO method and  under weighted average method. You have to show the inventory movements and balance for each transaction. Round per unit cost to four decimal points and total cost to 2 decimal points for the weighted average method.