Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 f shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase. b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset + ÷ + + 0 Noncash Asset + ♦ ÷ + 0 Balance Sheet Liabilities + + + ÷ 0 Contributed + Capital + Earned Capital + + → 0 Revenues. Income Statement Expenses + + + → 0 Net ■ Income 0
Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 f shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase. b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset + ÷ + + 0 Noncash Asset + ♦ ÷ + 0 Balance Sheet Liabilities + + + ÷ 0 Contributed + Capital + Earned Capital + + → 0 Revenues. Income Statement Expenses + + + → 0 Net ■ Income 0
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 1PB: Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased...
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