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
Related questions
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
