Answer:
Sahim Company
Case X: Cash received from customers = $508,600
Case Y: Cash paid for rent = $141,400
Case Z: Cash paid for merchandise = $481,500
Explanation:
a) Data and Calculations:
Case X: Compute cash received from customers:
Sales $ 515,000
Accounts receivable, December 31, 2013 27,200
Accounts receivable, December 31, 2014 33,600
Case Y: Compute cash paid for rent:
Rent expense $ 139,800
Rent payable, December 31, 2013 7,800
Rent payable, December 31, 2014 6,200
Case Z: Compute cash paid for merchandise:
Cost of goods sold $ 525,000
Merchandise inventory, December 31, 2013 158,600
Accounts payable, December 31, 2013 66,700
Merchandise inventory, December 31, 2014 130,400
Accounts payable, December 31, 2014 82,000
Case X: Cash received from customers:
Accounts receivable
Account Titles Debit Credit
Sales $ 515,000
December 31, 2013 27,200
December 31, 2014 $33,600
Cash received 508,600
Case Y: Cash paid for rent:
Rent Payable
Account Titles Debit Credit
Rent expense $ 139,800
December 31, 2013 7,800
December 31, 2014 $6,200
Cash paid 141,400
Case Z: Cash paid for merchandise:
Cost of goods sold $ 525,000
Merchandise inventory, December 31, 2014 130,400
Merchandise inventory, December 31, 2013 (158,600)
Purchases during 2014 $ 496,800
Accounts payable
Account Titles Debit Credit
December 31, 2013 $66,700
Purchases during 2014 496,800
December 31, 2014 $82,000
Cash paid for merchandise 481,500
