Question

Prepare journal entries for each of the transactions listed in BE 2–1.
The Marchetti Soup Company entered into the following transactions during the month of June:
(1) Purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system);
(2) Paid $40,000 in salaries to employees for work performed during the month;
(3) Sold merchandise that cost $120,000 to credit customers for $200,000;
(4) Collected $180,000 in cash from credit customers; and
(5) Paid suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation.



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  • CreatedJune 24, 2013
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