The following transactions occurred during the month of November in the operation of Carols Cutsie Cosmetics, Inc,
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Question:
The following transactions occurred during the month of November in the operation of Carol’s Cutsie Cosmetics, Inc, a wholesaler who sells to retail stores. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided.
- November 4 Purchased merchandise for $9,000 on account from
International Fragrance Corporation, terms: 3/10, n/60.
- November 15 Made cash sales of $300.
- November 16 Sold merchandise to Lacy’s Department Store on account for
$4,000, terms 2/10, n/30. The merchandise had cost Carol’s $1,500.
- November 26 Received full amount due from Lacy’s Department Store
- November 30 Recorded the shrinkage adjustment. The inventory on hand as
determined by taking a physical inventory at the end of November is $7,400.
For Problem 1:
Carol’s Cutsie Cosmetics Transaction Record
assets | = | liabilities | + | shareholders equity | ||||
date | cash | accounts receivable | merchandise inventory | accounts payable | retained earnings | description of retained earning transacitions | ||
11/4 | ||||||||
11/15 | ||||||||
11/16 | ||||||||
11/26 | ||||||||
11/30 | ||||||||
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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