[hello_19]

So Jack's is a souvenir company

Beginning Feb
Jack signed a contract with a company to make the product. He had 5000 items produced for $10 each. Jack paid the producer $40000 in cash and said he would pay an additional 5000 on March 30 and the remainder on at the end of August

So this is what I have

Dr. Inventory 50,000
Cr Cash 40000
Cr A/P 10000

Is this rightt?

[Just Looking]

Yes, looks good.

[hello_19]

I have another Qs if its OK.

Now jack decides to hire number of vendors who work on street carts to sell the product. He agrees to pay the vendor 5$ for each sold. His selling price of the product is 19$ each. The vendor will pay him 14$ for each product they sell

By the end of the month he has 3500 remaining (1500 sold)(5000 were bought for 10$)
Are these JE right ?

Dr. Cash 28500
Cr Revenue 28500
(Sold 1500 and the selling price is 19$)

Dr Wages Expense 7500
Cr Cash 7500
(Has to pay vendor 5$ for each sold

Also I'm having trouble with the inventory part I know it is suppose to be
Dr. Cogs XXX
Cr Inv XXX

but don't know how to find the value

Any help will be greateful

[Just Looking]

I understand what you are thinking, but I have a problem with the Wages Expense. I don't believe they are employees, so I'd use a different account - maybe Vendor Expense. Did they by chance give you a chart of accounts? Either way, you have the right idea.

Jack paid $10 per item. As they are sold, the $10/item is debited to COGS and credited to Inventory. You will see that your inventory is then equal to the remaining 3500 at $10/unit.