Electronics Incorporated purchased 120 computers from its supplier on credit at a cost of $400 per computer (total cost of $48,000). The computers were purchased to be held for sale to customers (i.e., inventory) By the end of the month, they had sold all 120 computers for $700 each for cash (total cash received $84,000). At the end of the month they paid the supplier the $48,000 they owed to settle its account payable with the supplier.

Use the financial statement effects template below to record these transactions.

Transcribed Image Text:

Transaction Purchase computers Sell computers Record cost of goods sold Pay for computers Balance Sheet Cash Noncash Asset Assets || 11 11 Liabil ities + Contrib. Capital + Earned Capital Income Statement Rev- enues I I I Expen- ses 11 11 11 11 = Net Income Transaction Purchase computers Sell computers Record cost of goods sold Pay for computers Balance Sheet Cash Noncash Asset Assets || 11 11 Liabil ities + Contrib. Capital + Earned Capital Income Statement Rev- enues I I I Expen- ses 11 11 11 11 = Net Income

Answer rating: 100% (QA)

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