At the beginning of January, Conway Coffee Bean Shop purchased inventory for $5,000 cash to sell in January and February. The shop sold inventory that cost $2,100 in January and the remainder in February. What is the cost of goods sold for January and the cost of goods sold for February if Conway Coffee uses GAAP? What is the cost of goods sold for each month if Conway Coffee uses cash basis accounting?
Answer to relevant QuestionsJaybee Company provided services on account for a customer that amounted to $400. How would this transaction be shown in the accounting equation?Given the following information, compute the current ratio for the two years shown. Explain the trend in the ratio for both years and what you think itmeans.Use the balance sheet you prepared in E2-26A to compute the current ratio at December 31, 2012.Use the balance sheet you prepared in E2-34B to compute the current ratio at December 31, 2012.InE2-34BThe following transactions occurred during Bono Exterminators’ first month of business:a. Joe Bono started a business, Bono Exterminators, by contributing $6,200 cash on January 1, 2010, in exchange for common stock.b. The ...
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