Question: Mateo Inc is a retailer of men s and women s clothing

Mateo Inc. is a retailer of men’s and women’s clothing aimed at college-age customers. Listed below are additional transactions that Mateo was considering at the end of the accounting period.

Required: Assuming that each had occurred during the fiscal year, complete the following tabulation, indicating the sign of the effect of each additional transaction (+ for increase, — for decrease, and NE for no effect). Consider each item independently and ignore taxes.
a. Borrowed $3,000 on a line of credit with the bank.
b. Incurred salary expense of $1,000 paid for in cash.
c. Provided S2,000 of services on account.
d. Purchased $700 of inventory on account.
e. Sold $500 of goods on account. The related cost of goods sold was $300. Gross profit margin was 45% before thissale.

Sale on SolutionInn
  • CreatedJuly 01, 2014
  • Files Included
Post your question