Ralph's Mini-Mart store in Alpine experienced the following events during the current year: 1. Incurred $270,000 in selling costs. 2. Incurred $180,000 of administrative costs. 3. Purchased $870,000 of merchandise. 4. Paid $30,000 for transportation-in costs. 5. Took an inventory at year-end and learned that goods costing $140,000 were on hand. This compared with a beginning inventory of $225,000 on January 1. 6. Determined that sales revenue during the year was $2,600,000. 7. 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: Amount a. Beginning balance (BB) b. Transfers-in (TI) C. Ending balance (EB) d. Transfers-out (TO)

Ralph's Mini-Mart store in Alpine experienced the following events during the current year: 1. Incurred $270,000 in selling costs. 2. Incurred $180,000 of administrative costs. 3. Purchased $870,000 of merchandise. 4. Paid $30,000 for transportation-in costs. 5. Took an inventory at year-end and learned that goods costing $140,000 were on hand. This compared with a beginning inventory of $225,000 on January 1. 6. Determined that sales revenue during the year was $2,600,000. 7. 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: Amount a. Beginning balance (BB) b. Transfers-in (TI) C. Ending balance (EB) d. Transfers-out (TO)

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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