Feb 01 Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Feb 04 Sale of inventory to a customer - selling price $62,000 - cost of inventory sold $16,000- customer paid cash which was deposited in Big Bank. Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned. Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000- customer will pay in the future. Sale of inventory to a customer- selling price $110,000 - cost of inventory sold $28,000 will pay for the remaining amount of the sale in 30 days. Feb 18 - customer pays $40,000 cash which is deposited in Little Bank - customer Feb 22 Purchase additional inventory-pay $17,000 cash out of Big Bank for the inventory. Feb 27 Take $23,000 cash out of Little Bank to pay employees for wages they have earned. Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to Big Bank for February-interest will be paid in June. Feb 28 Adjust the Interest Payable-Little Bank account to record the $450 of interest owed to Little Bank for February- interest will be paid in March. Feb 28
Feb 01 Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Feb 04 Sale of inventory to a customer - selling price $62,000 - cost of inventory sold $16,000- customer paid cash which was deposited in Big Bank. Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned. Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000- customer will pay in the future. Sale of inventory to a customer- selling price $110,000 - cost of inventory sold $28,000 will pay for the remaining amount of the sale in 30 days. Feb 18 - customer pays $40,000 cash which is deposited in Little Bank - customer Feb 22 Purchase additional inventory-pay $17,000 cash out of Big Bank for the inventory. Feb 27 Take $23,000 cash out of Little Bank to pay employees for wages they have earned. Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to Big Bank for February-interest will be paid in June. Feb 28 Adjust the Interest Payable-Little Bank account to record the $450 of interest owed to Little Bank for February- interest will be paid in March. Feb 28
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 11MCQ
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