Journal entries for perpetual and periodic inventory The following information is taken from the accounting records of Frog Ltd for the year ended 30 June 2019: $ Inventory 1 July XXXXXXXXXXPurchases...

Journal entries for perpetual and periodic inventory The following information is taken from the accounting records of Frog Ltd for the year ended 30 June 2019: $ Inventory 1 July 2018 40 000 Purchases (all credit) 120 000 Sales (all credit) 210 000 Inventory 30 June 2019 19 800 Operating expenses (all cash) 35 000 The company’s mark-up is 50 per cent on cost. 1 Assuming all purchases and sales were in single transactions, prepare summary journal entries and closing entries using: a perpetual inventory b periodic inventory. 2 Prepare income statements for the year ended 30 June 2019 using both inventory systems.