The Ellis Company, a retail company, has budgeted its activity for September according to the following information: Sales are budgeted at $392,000 and all sales are for cash. All purchases of merchandise inventory are for cash. Merchandise inventory was $150,000 on August 31 and the planned merchandise inventory on September 30 is $140,000. All merchandise is sold at 40% above cost. The selling and administrative expenses are budgeted at $92,000 for the month. All of these expenses are paid for in cash except for depreciation of $12,000. 7. The budgeted net income for September is: $20,000. $143,200. а. b. с. d. was siare The budgeted cash disbursements for September are: $140,000. $270,000. $350,000. $362,000. а. b. с. d.

The Ellis Company, a retail company, has budgeted its activity for September according to the following information: Sales are budgeted at $392,000 and all sales are for cash. All purchases of merchandise inventory are for cash. Merchandise inventory was $150,000 on August 31 and the planned merchandise inventory on September 30 is $140,000. All merchandise is sold at 40% above cost. The selling and administrative expenses are budgeted at $92,000 for the month. All of these expenses are paid for in cash except for depreciation of $12,000. 7. The budgeted net income for September is: $20,000. $143,200. а. b. с. d. was siare The budgeted cash disbursements for September are: $140,000. $270,000. $350,000. $362,000. а. b. с. d.

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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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Show the solution in good accounting form

The Ellis Company, a retail company, has budgeted its activity for September according to
the following information:
Sales are budgeted at $392,000 and all sales are for cash.
All purchases of merchandise inventory are for cash. Merchandise inventory was
$150,000 on August 31 and the planned merchandise inventory on September 30 is
$140,000. All merchandise is sold at 40% above cost.
The selling and administrative expenses are budgeted at $92,000 for the month. All of
these expenses are paid for in cash except for depreciation of $12,000.
7.
The budgeted net income for September is:
$20,000.
$143,200.
$112,000.
а.
b.
C.
d.
was siare
The budgeted cash disbursements for September are:
$140,000.
$270,000.
$350,000.
$362,000.
а.
b.
с.
d.

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