The following events occurred at Moore's Hobbies and Crafts store during the most recent fiscal year: a. Purchased merchandise costing $108,000. b. Had sales revenue for the year totaling $154,000; the merchandise sold was purchased for $89,500. c. Paid $9,000 transportation-in costs. d. Incurred selling and administrative costs equal to 10 percent of sales revenue. e. All transactions, sales and purchases, were for cash. f. An inventory account at the end of the year indicated merchandise costing $100,500 was on hand. Required: Give the amounts for the following items in the Merchandise Inventory account: a. Ending balance (EB) b. Transfers-out (TO) c. Transfers-in (TI) d. Beginning balance (BB) Amount
The following events occurred at Moore's Hobbies and Crafts store during the most recent fiscal year: a. Purchased merchandise costing $108,000. b. Had sales revenue for the year totaling $154,000; the merchandise sold was purchased for $89,500. c. Paid $9,000 transportation-in costs. d. Incurred selling and administrative costs equal to 10 percent of sales revenue. e. All transactions, sales and purchases, were for cash. f. An inventory account at the end of the year indicated merchandise costing $100,500 was on hand. Required: Give the amounts for the following items in the Merchandise Inventory account: a. Ending balance (EB) b. Transfers-out (TO) c. Transfers-in (TI) d. Beginning balance (BB) Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
Transcribed Image Text:The following events occurred at Moore's Hobbies and Crafts store during the most recent fiscal year:
a. Purchased merchandise costing $108,000.
b. Had sales revenue for the year totaling $154,000; the merchandise sold was purchased for $89,500.
c. Paid $9,000 transportation-in costs.
d. Incurred selling and administrative costs equal to 10 percent of sales revenue.
e. All transactions, sales and purchases, were for cash.
f. An inventory account at the end of the year indicated merchandise costing $100,500 was on hand.
Required:
Give the amounts for the following items in the Merchandise Inventory account:
a. Ending balance (EB)
b. Transfers-out (TO)
c. Transfers-in (TI)
d. Beginning balance (BB)
Amount
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