Question

*Brief Exercise 218 On September 4, Roberta's Knickknacks buys merchandise on account from Dolan Company. The selling price of the goods is $900 and the cost of goods is $600. Both companies use the perpetual inventory system. Use a tabular summary for each company to record the transactions for both companies. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Roberta's knickknacks: Assets = Liabilities + Stockholder's Equity Retained Earnings Rev. . Exp. - Inventory Accounts Payable. Common Stock Div. Sept. 4 Dolan Company: Assets - Liabilities + Stockholder's Equity Retained Earnings Rev. . Exp. . Div. Accounts Receivable + = + Inventory Accounts Payable Common Stock Sept. 4 Sales revenue Cost of goods sold Question Attempts: 0 of 1 used

Answer 1

Answer:

Roberta's Knickknacks:

	Assets	=	Liabilities	+	Stockholders' Equity
						+	Retained earnings
	Inventory	=	Accounts payable	+	Common stock		Rev.	-	Exp.	-	Div.
Sept.4	$900	=	$900	+		+		-		-

Dolan Company:

Assets

=

Liabilities

+

Stockholders' Equity

Accounts Receivable

+

Retained earnings

+

Inventory

=

Accounts payable

+

Common stock

Rev.

-

Exp.

-

Div.

Sept.4

$900

+

=

+

+

$900

-

-

+

($600)

=

+

-

$600

-