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
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