1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sergeeva-Olga [200]
3 years ago
5

Started the business when it acquired $61,000 cash from the issue of common stock. Paid $21,300 cash to purchase inventory. Sold

inventory costing $12,100 for $27,700 cash. Physically counted inventory; had inventory of $7,400 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.
Business
1 answer:
MA_775_DIABLO [31]3 years ago
7 0

Answer:

<u>Part a</u>

Transaction 1

Debit : Cash $61,000

Credit : Common Stock $61,000

Transaction 2

Debit : Merchandise  $21,300

Credit : Cash $21,300

Transaction 3

Debit : Cash  $27,700

Debit : Cost of Sales    $12,100

Credit : Sales Revenue $27,700

Credit : Merchandise   $12,100

<u>Part b</u>

Income Statement for the year

Sales                                                             $27,700

Less Cost of Sales

Opening Stock                              $0

Purchases                                 $21,300

Less Closing Inventory            ($7,400)    ($13,900)

Gross Profit                                                  $13,800

Balance Sheet as at end of the year

ASSETS

Inventory                                                     $7,400

Cash ($61,000 - $21,300 + $27,700)      $67,400

TOTAL ASSETS                                        $74,800

EQUITY AND LIABILITIES

Common Stock                                         $61,000

Net Profit                                                   $13,800

TOTAL EQUITY AND LIABILITIES           $74,800

Explanation:

Step 1 : Journal entries

Tip - there are two or more accounts affected by transactions. Identify these and record the Debit and Credit

Step 2 : Income Statement

The Income Statement accounts for Revenues / Incomes and Expenses. Identify Accounts for these and Record them in this statement.

Step 2 : Balance Sheet

The Balance Sheet accounts for Assets, Liabilities and Equity. Identify Accounts for these and record them in this statement.

You might be interested in
In cultures that are high in uncertainty avoidance,————-
lukranit [14]

Culture is known to be the way of life of people in a particular place. In cultures that are high in uncertainty avoidance is one where orderliness, consistency, and structure are important.

  • Uncertainty avoidance is simply known as the way cultures socialize its people or members to feel in uncertain, novel, surprising, or in surprise situations.

People who have high uncertainty avoidance cultures often capitalizes on strict orderliness and consistency in behavior.

Conclusively, The ability to approach cross-cultural work relationships with a learner mind-set is known to be an attribute of high cultural intelligence.

Learn more about Culture from

brainly.com/question/25010777

6 0
2 years ago
Check my work Check My Work button is now disabledItem 5Item 5 6 points The aftertax cost of debt: Multiple Choice varies invers
DaniilM [7]

Answer: is highly dependent upon a company's tax rate.

Explanation:

The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt

equals the pre-tax cost of debt which is then multiplied by (1 – tax rate).

The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.

7 0
3 years ago
If the equilibrium price of avocados is $4 and the government issues a price ceiling of $4.50, what is likely to happen in the m
Marat540 [252]

Answer:

A surplus of avocados will result from the price ceiling.

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

A price ceiling is binding when it is set below equilibrium price.

The price ceiling ($4.50) is less than the equilibrium price ($4) of avocados. As a result, surplus would increase. The supply of avocados would exceed the demand because price ceiling is above equilibrium price

6 0
3 years ago
David wants to buy a pizza and go to the movies. However, he only has enough money to do one or the other. In order to decide wh
lyudmila [28]

I would go to the movies if it was up to me.

4 0
3 years ago
Read 2 more answers
Read the paragraph. preparation is the key to success when hiking. hikers must research weather conditions and wear appropriate
Doss [256]
The answer is <span>A. to develop the central idea of hiking preparedness</span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • A manufacturing company applies factory overhead based on direct labor hours. at the beginning of the year, it estimated that fa
    9·1 answer
  • A local tree farm is trying to decide which fertilizer to use to grow its trees. It can either buy the famous Greenwood Fertiliz
    6·1 answer
  • "Which challenges has China faced in its efforts to become a major player in the global market for consumer electronics and othe
    10·1 answer
  • Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.
    13·1 answer
  • Al Razim, a construction engineer, recently traveled to Germany in order to find investors for his real-estate project. While he
    9·1 answer
  • Turnbull Department Store had net credit sales of $18,000,000 and cost of goods sold of $15,000,000 for the year. The average in
    14·2 answers
  • Which of the following products probably accounted for by a company using a job order costing system? A) facial tissue B) Hershe
    10·1 answer
  • Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI deci
    11·1 answer
  • Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled produ
    12·1 answer
  • Write about how bookkeeping is done in a small business and what they can do to improve their business
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!