Question

The Marchetti Soup Company entered into the following transactions during the month of June (1) purchased inventory on account for $200,000 (assume Marchetti uses a perpetual inventory system (2) paid $51000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $142,000 to credit customers for $255,000 (4) collected $235,000 in cash from credit customers, and (5) paid suppliers of inventory $180,000 Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $70,500, 554,000 and $33,000, respectively. (Enter the transaction number in the column next to the amount.) Answer is not complete. Beg bal Cash 70,500 235.000 51,000 180,000 Beg bal Accounts receivable 54,000 255.000 235.000 End 74.500 bal End bal 74.000 Inventory Beg bal Bog bal Accounts payable 33.000 200,000 180.000 200.000 142.000 End. bal 58,000 End bal 53.000 Sales revenue Cost of goods sold

Answer 1

The T accounts will be prepared in the following manner:

Cash Date Dr Date Cr Beg. Bal. $ 70,500 2 $ 51,000 4 $ 235,000 5 $ 180,000 Total $ 305,500 Total $ 231,000 Ending bal. $ 74,500 Accounts Payable Date Dr Date Cr 5 $ 180,000 Beg. Bal. $ 33,000 1 $ 200,000 Total $ 180,000 Total $ 233,000 Ending bal. $ 53,000 Common Stock Date Dr Date Cr Beg. Bal. $ 91,500 Accounts Receivable Date Dr Date Cr Beg. Bal. $ 54,000 4 $ 235,000 3 $ 255,000 Total $ 309,000 Total $ 235,000 Ending bal. $ 74,000 Total $ Total 91,500 Ending bal. $ 91,500 Date Dr $ Inventory Date Dr Date Cr Beg. Bal. $ 3 $ 142,000 1 $ 200,000 Total $ 200,000 Total $ 142,000 Ending bal. $ 58,000 Sales Revenues Date Cr Beg. Bal. $ 3 $ 255,000 Total $ 255,000 Ending bal. $ 255,000 Total $ Salaries & Wages Expense Date Dr Date Cr Beg. Bal. $ 2 $ 51,000 Total $ 51,000 Total $ Ending bal. $ 51,000 Cost of Goods Sold Date Dr Date Cr Beg. E $ 3 $ 142,000 Total $ 142,000 Total $ Endin $ 142,000

Workings

Beginning Debit balances= cash + accounts receivable = 70500+54000 = $124,500

Beginning Credit balances= accounts payable = $33,000

The diff. is opening balance of stockholders' equity which can be common stock or capital account = 124500-33000 = $91,500

1) Inventory will be debited and accounts payable will be credited by $200,000

2) Salaries expense will be debited and cash will be credited by $51,000

3) a - Accounts receivable will be debited and sales revenue will be credited by $255,000

b - Cost of goods sold will be debited and inventory will be credited by $142,000

4) Cash will be debited and accounts receivable will be credited by $235,000

5) Accounts payable will be debited and cash will be credited by $180,000

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