Luft Corporation's accounts had the following beginning balances: During the period, the following transactions occurred: 1. Purchased
Question:
During the period, the following transactions occurred:
1. Purchased inventory on account, $ 1,300.
2. Paid employees, $730.
3. Sold goods for cash, $ 1,940.
4. Sold goods on credit, $1,810.
5. Overhead and other expenses paid in cash, $900.
6. Collection of accounts receivable, $1,510.
7. Paid certain accounts payable, $1,720.
8. Received cash for revenue applicable to the next period, $650.
9. Increased the current note payable by $200.
10. Physical inventory showed ending balance of $ 1,750.
11. Depreciation expense, $300.
Required:
a. Journalize the transactions.
b. Set up T accounts and post beginning balances and transactions.
c. Determine the cost of goods sold.
d. Prepare an ending balance sheet.
e. Prepare an income statement for the period (ignore taxes).
Step by Step Answer:
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant