On August 30, 2004, Goya Co. purchased $20,000 of canvas material from a supplier, Ramirez, Inc., on
Question:
On August 30, 2004, Goya Co. purchased $20,000 of canvas material from a supplier, Ramirez, Inc., on credit. The material is cut into smaller pieces for sale to customers. Prior to the purchase, Goya’s merchandise inventory account had a balance of $135,000 and its accounts payable account had a balance of $17,000. Answer each of the following questions:
(a) What subsidiary accounts are affected by the purchase and how are they affected?
(b) What control accounts are affected and how are they affected?
(c) If Goya Co. prepared a balance sheet immediately after recording the purchase, how would the balance sheet report the information associated with the purchase event?
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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a MerchandiseCanvas Material 20000 Accounts Payabl...View the full answer
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
