FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question
Do not answer in image format. Maintain accuracy and quality in your answer. Answer completely.
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
expand button
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
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education