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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 + Ĉ + # 0 Balance Sheet Liabilities + • + 0 Contributed + Capital Earned Capital + • + + 0 Revenues - Income Statement Expenses + + 0 Net Income 0

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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