Baris Company had no inventory at the beginning of 2023. Baris bought two identical electric bicycles on credit with terms 3/10, n/30 for $2,400 on January 1, 2023. On January 6, Baris paid for both bicycles. On January 20, Baris sold one bicycle to E. Burke for $1,700 on credit, with terms 2/10, n/30. Burke paid for the bicycle on January 28. Required: Provide the balances that would appear in each of the following accounts related to the transactions described above as of January 31, 2023: Account Balance as of Jan. 31, 2023 Accounts payable Accounts receivable Cost of goods sold Sales revenue Sales discounts Inventory How much net cash did Baris pay or receive as a result of the transactions described above? In other words, by how much did cash change as a result of the transactions? What would be the change in current assets as a result of these transactions? What would be the change in current liabilities as a result of these transactions? What would be the following reported amounts as a result these transactions: Net sales Gross profit (aka Gross margin) Hint: it might be helpful to write down journal entries for the transactions and post them to T-accounts. This might help you sort out the effects on each general ledger account and help you answer the questions.
Baris Company had no inventory at the beginning of 2023. Baris bought two identical electric bicycles on credit with terms 3/10, n/30 for $2,400 on January 1, 2023. On January 6, Baris paid for both bicycles. On January 20, Baris sold one bicycle to E. Burke for $1,700 on credit, with terms 2/10, n/30. Burke paid for the bicycle on January 28. Required: Provide the balances that would appear in each of the following accounts related to the transactions described above as of January 31, 2023:
Account Balance as of Jan. 31, 2023
Accounts payable
Cost of goods sold
Sales revenue
Sales discounts
Inventory
How much net cash did Baris pay or receive as a result of the transactions described above? In other words, by how much did cash change as a result of the transactions? What would be the change in current assets as a result of these transactions? What would be the change in current liabilities as a result of these transactions? What would be the following reported amounts as a result these transactions: Net sales Gross profit (aka Gross margin) Hint: it might be helpful to write down
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