Question: Electronics Incorporated (EI) purchased 120 computers from its supplier on credit at a cost of $500 per computer. The computers were purchased to be held
Electronics Incorporated (EI) purchased 120 computers from its supplier on credit at a cost of $500 per computer. The computers were purchased to be held for sale to customers. By the end of the month, EI had sold all 120 computers for $800 each. The store received payment for these computers but waited until the end of the month to settle its account payable with the supplier.
Use the financial statement effects template below to record these transactions.
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| Balance Sheet | Income Statement
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| Transaction | Cash Asset | + | Noncash Assets | = | Liabil ities | + | Contrib. Capital | + | Earned Capital | Rev-enues |
| Expen-ses | = | Net Income | |||
| Purchase computers |
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| Sell computers |
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| Record cost of goods sold |
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| Pay for computers |
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