Ralph’s Mini-Mart store in Alpine experienced the following events during the current year: 1. Incurred $391,000 in selling costs.2. Incurred $1,216,000 of administrative costs.3. Purchased $381,000 of merchandise.4. Paid $35,000 for transportation-in costs.5. Took an inventory at year-end and learned that goods costing $202,000 were on hand. This compared with a beginning inventory of $311,000 on January 1.6. Determined that sales revenue during the year was $2,972,000.7. 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:Beginning Balance =Transfers In =Transfers Out =Ending Balance =

Beginning Balance - Given in the problem Transfers In = Purchase + Direct Expenses Transferred Out = Opening Balance + Transferred in (-) Closing Balance Ending Balance = Given in the problemBeginning Balance = $311,000 Transfers In = $381,000 + $35,000 Transfers In = $416,000 Ending Balance = $202,000 Transferred Out = $311,000 + $416,000 - $202,000 Transferred Out = $525,000

Answered: Ralph’s Mini-Mart store in Alpine…

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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Ralph’s Mini-Mart store in Alpine experienced the following events during the current year:

1. Incurred $391,000 in selling costs.
2. Incurred $1,216,000 of administrative costs.
3. Purchased $381,000 of merchandise.
4. Paid $35,000 for transportation-in costs.
5. Took an inventory at year-end and learned that goods costing $202,000 were on hand. This compared with a beginning inventory of $311,000 on January 1.
6. Determined that sales revenue during the year was $2,972,000.
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:

Beginning Balance =

Transfers In =

Transfers Out =

Ending Balance =

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