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 $55,000 were on hand. This compared with a beginning inventory of $72,000 on January 1. c. Purchased $124,000 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 $55,000 were on hand. This compared with a beginning inventory of $72,000 on January 1. c. Purchased $124,000 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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