Final answer:
The student's question involves creating journal entries in a periodic inventory system for two companies. General examples include entries for purchasing inventory, year-end inventory adjustments, and recording the cost of goods sold. Specific transactions details are needed for precise entries.
Step-by-step explanation:
The question asks us to prepare the necessary journal entries for Jefferson, Inc., and Lind Stores, with both companies using the periodic inventory system. In a periodic inventory system, inventory purchases during the year are recorded in a purchases account. At the end of the year, inventory is counted, and the cost of goods sold (COGS) is calculated by adjusting the purchases with the change in inventory levels.
Without specific transaction details, we can only provide general examples of journal entries in a periodic inventory system:
- Purchase of inventory:
Debit Purchases
Credit Accounts Payable or Cash
- Year-end inventory adjustment:
Debit Inventory
Credit Purchases (to remove ending inventory from purchases)
- Recording COGS:
Debit COGS
Credit Inventory (to recognize the cost of inventory sold)
Sales transactions would typically involve debiting Accounts Receivable or Cash and crediting Sales Revenue, and at the end of the period, adjustments are made to reconcile inventory and recognize COGS.