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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Do not answer in image format.
Maintain accuracy and quality in your answer.
Answer completely.

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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