Question: The following accounting events A I affected the assets liabilities and

The following accounting events (A–I) affected the assets, liabilities, and owners’ equity of Bucking-ham Company during the fiscal year ended December 31, 2010.
A. Purchased $ 26,000 in merchandise inventory on open account.
B. Sold $ 60,000 in merchandise inventory on open account to a customer for $ 89,400.
C. Purchased $ 36,000 in merchandise inventory for cash.
D. Sold $ 63,600 in merchandise inventory for $ 85,040 cash.
E. Received and immediately paid the monthly utility bill, $ 2,150.
F. Paid employees $ 8,200 for wages earned.
G. Received a partial payment from a customer on account, $ 58,000.
H. Paid rent for the current month, $ 12,000.
I. Recorded depreciation on store equipment, $ 6,000.
1. Determine the effect of each of the preceding events on the accounting equation.
2. Prepare the general journal entries to record each of these events. You may want to set up T- accounts to keep track of some accounts.
3. Prepare the income statement for the period.
4. Prepare the statement of cash flows for the period (ignore beginning balance).

Sale on SolutionInn
  • CreatedMarch 25, 2015
  • Files Included
Post your question