Question: Prepare journal entries for each of the transactions listed in

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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