The Marchetti Soup Company entered into the following transactionsduring the month of June: (a) purchased inventory on account for$185,000 (assume Marchetti uses a perpetual inventory system); (b)paid $48,000 in salaries to employees for work performed during themonth; (c) sold merchandise that cost $136,000 to credit customersfor $240,000; (d) collected $220,000 in cash from credit customers;and (e) paid suppliers of inventory $165,000.
Post the above transactions in the T-accounts given below. Assumethat the opening balances in each of the accounts is zero exceptfor cash, accounts receivable, and accounts payable that hadopening balances of $69,000, $51,000, and $30,000,respectively.
Beginningand ending balance for....
cash, inventory, sales revenue, salaries expense, accountsrecievable, accounts payable, and costs of goods sold
The Marchetti Soup Company entered into the following transactionsduring the month of June: (a) purchased inventory on account for$185,000 (assume Marchetti uses a perpetual inventory system); (b)paid $48,000 in salaries to employees for work performed during themonth; (c) sold merchandise that cost $136,000 to credit customersfor $240,000; (d) collected $220,000 in cash from credit customers;and (e) paid suppliers of inventory $165,000. |
Post the above transactions in the T-accounts given below. Assumethat the opening balances in each of the accounts is zero exceptfor cash, accounts receivable, and accounts payable that hadopening balances of $69,000, $51,000, and $30,000,respectively. |
cash, inventory, sales revenue, salaries expense, accountsrecievable, accounts payable, and costs of goods sold
Related questions
The Marchetti Soup Company entered into the followingtransactions during the month of June: (1) purchased inventory onaccount for $160,000 (assume Marchetti uses a perpetual inventorysystem); (2) paid $43,000 in salaries to employees for workperformed during the month; (3) sold merchandise that cost $126,000to credit customers for $215,000; (4) collected $195,000 in cashfrom credit customers; and (5) paid suppliers of inventory$140,000. |
Analyze each transaction and show the effect of each on theaccounting equation for the corporation. (Amounts to bededucted should be indicated by a minus sign. Enter the net changefor items which affect more than one account in an account category(i.e., assets, liabilities, etc.)) |
Assets = Liabilities + Paid in Capital + Retained earnings
On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.
| Debits | Credits | |||
| Cash | $4,795 | Accumulated depreciation | $1,000 | |
| Accounts Receivable | 2,320 | Accounts Payable | 6,800 | |
| Supplies | 1,000 | Unearned Service Revenue | 400 | |
| Equipment | 40,000 | Salaries Payable | 550 | |
| Common Stock | 11,000 | |||
| Retained Earnings | 28,365 | |||
| $48,115 | $48,115 |
During November the followingsummary transactions were completed.
Nov. 8 | Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November. |
10 | Received $1,400 cash from customers in payment of account. |
11 | Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30. |
12 | Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000. |
15 | Received credit from Midwest Wholesale Supply for merchandisereturned $200. |
19 | Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12. |
20 | Paid Midwest Wholesale Supply in full, less discount. (Donâtforget the return on the 15th.) |
22 | Received $1,300 cash for services performed in November. |
25 | Purchased equipment on account $3,000. |
27 | Purchased supplies on account $1,300. |
28 | Paid creditors $2,500 of accounts payable due. |
29 | Paid November rent $300. |
29 | Paid salaries $1,100. |
29 | Performed services on account and billed customers for servicesprovided $1,900. |
29 | Received $550 from customers for services to be provided in thefuture. |
Adjustment data:
1. | Supplies on hand are valued at $1,600. |
2. | Accrued salaries payable as of 11/30 are $500. |
3. | Depreciation for the month is $750. |
4. | $650 of the unearned service revenue has not been earned bymonth end. |
Instructions
Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page.
Cash | |
| |
| |
Accounts Receivable | |
Supplies | |
Store Equipment | |
| Accumulated Depreciationâ Store Equipment | |
Accounts Payable | |
| Unearned Service Revenue | |
Salaries Payable | |
Common Stock | |
Retained Earnings | |
General Ledger (Continued)
Income Summary | |
Question 26
Corresponds to CLO 6(b) Mann Corporation's employees workedovertime to complete an order that is sold on July 27. The officesends a statement to the customer on August 15, and payment isreceived on September 5. Mann follows generally accepted accountingprinciples (GAAP). In what month should the overtime wages beexpensed?
either July or August, depending on when the pay period ends | ||
September | ||
August | ||
July |
3 points
Question 27
Corresponds to CLO 6(c) Sight Company had the followingtransactions during 2013: sales of $5,000 on account; collected$1,600 for services to be performed in 2014; paid $4,100 cash for2013 salaries; purchased airline tickets for $800 in December for atrip to take place in 2014. What is Sight's 2013 net income usingaccrual accounting?
$1,700 | ||
$900 | ||
$2,500 | ||
$5,800 |
3 points
Question 28
Corresponds to CLO 6(d) Lyme Corporation had the followingtransactions during 2013: sales of $8,000 on account; collected$4,500 for services to be performed in 2014; paid $3,000 cash for2013 salaries; paid $400 for airline tickets for a trip to takeplace in 2014. What is Lyme's 2013 net income using cash basisaccounting?
$4,600 | ||
$9,100 | ||
$1,100 | ||
$1,500 |
3 points
Question 29
Corresponds to CLO 7(a) Ping Sports Company purchases $1,000 ofmerchandise on credit. Using the perpetual inventory approach, thejournal entry to record this transaction would be:
debit: Inventory $1,000; credit: Accounts Payable $1,000 | ||
debit: Accounts Payable $1,000; credit: Inventory $1,000 | ||
debit: Accounts Payable $1,000; credit: Purchases $1,000 | ||
debit: Purchases $1,000; credit: Accounts Payable $1,000 |
3 points
Question 30
Corresponds to CLO 7(b) Gardner Corporation had sales of $2,400on account on January 9, 2013. Gardner uses the periodic inventorymethod. The journal entry to record this transaction wouldinclude:
a debit to Sales Revenue and a credit to AccountsReceivable. | ||
a debit to Accounts Receivable, a credit to Sales Revenue, adebit to Cost of Goods Sold, and a credit to Inventory. | ||
a debit to Accounts Receivable and a credit to SalesRevenue. | ||
a debit to Accounts Receivable, a credit to Sales Revenue, adebit to Cost of Goods Sold, and a credit to Purchases. |
