Levchenko Company purchased inventories from a vendor for $14,400 on July 1. The purchase was financed through a $9,000 note with the remainder paid in cash. The vendor charged an additional $360 for shipping, on account. Levchenko paid a moving company $630 cash to move the inventory to a different warehouse. Interest on the note totaled $45, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset + ● + 0 Noncash Asset + Ĉ + # 0 Balance Sheet Liabilities + • + 0 Contributed + Capital Earned Capital + • + + 0 Revenues - Income Statement Expenses + + 0 Net Income 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Levchenko Company purchased inventories from a vendor for $14,400 on July 1. The purchase was financed through a $9,000 note with the remainder paid in cash. The vendor charged an
additional $360 for shipping, on account. Levchenko paid a moving company $630 cash to move the inventory to a different warehouse. Interest on the note totaled $45, payable in August.
a. Determine the cost to be assigned to the inventory. $
b. Record the transactions using the financial statement effects template.
Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected.
Transaction
a. Inventory purchase
b. Shipping charge
c. Moving cost
d. Interest incurred
Totals
Cash Asset
◆
→
÷
0
Noncash
Asset
→
♦
+
÷
0
=
Balance Sheet
Liabilities
♦
♦
÷
+
0
Contributed
Capital
+
Earned
Capital
◆
◆
+
◆
0
Revenues
Income Statement
Expenses
◆
◆
0
=
Net
Income
0
Transcribed Image Text:Levchenko Company purchased inventories from a vendor for $14,400 on July 1. The purchase was financed through a $9,000 note with the remainder paid in cash. The vendor charged an additional $360 for shipping, on account. Levchenko paid a moving company $630 cash to move the inventory to a different warehouse. Interest on the note totaled $45, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset ◆ → ÷ 0 Noncash Asset → ♦ + ÷ 0 = Balance Sheet Liabilities ♦ ♦ ÷ + 0 Contributed Capital + Earned Capital ◆ ◆ + ◆ 0 Revenues Income Statement Expenses ◆ ◆ 0 = Net Income 0
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