Cranbrook Used Books experienced the following events during the current year: a. Incurred $12,000 in selling costs. b. Took an inventory at year-end and learned that goods costing $105,000 were on hand. This compared with a beginning inventory of $77,000 on January 1. c. Purchased $164,000 of merchandise. d. Incurred $56,000 of administrative costs. e. Determined that sales revenue during the year was $187,000. f. Paid $4,500 for transportation-in costs. g. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash. Required: Give the amounts for the following items in the Merchandise Inventory account: a. Ending balance (EB) b. Transfers-in (TI) c. Beginning balance (BB) d. Transfers-out (TO) Amount
Cranbrook Used Books experienced the following events during the current year: a. Incurred $12,000 in selling costs. b. Took an inventory at year-end and learned that goods costing $105,000 were on hand. This compared with a beginning inventory of $77,000 on January 1. c. Purchased $164,000 of merchandise. d. Incurred $56,000 of administrative costs. e. Determined that sales revenue during the year was $187,000. f. Paid $4,500 for transportation-in costs. g. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash. Required: Give the amounts for the following items in the Merchandise Inventory account: a. Ending balance (EB) b. Transfers-in (TI) c. Beginning balance (BB) d. Transfers-out (TO) Amount
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Cranbrook Used Books experienced the following events during the current year:
a. Incurred $12,000 in selling costs.
b. Took an inventory at year-end and learned that goods costing $105,000 were on hand. This compared with a beginning inventory
of $77,000 on January 1.
c. Purchased $164,000 of merchandise.
d. Incurred $56,000 of administrative costs.
e. Determined that sales revenue during the year was $187,000.
f. Paid $4,500 for transportation-in costs.
g. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.
Required:
Give the amounts for the following items in the Merchandise Inventory account:
a. Ending balance (EB)
b. Transfers-in (TI)
c. Beginning balance (BB)
d. Transfers-out (TO)
Amount
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