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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Sanchez Company engaged in the following transactions
during Year 1:
1. Started the business by Issuing $12,500 of common stock
for cash.
2. The company paid cash to purchase $7,600 of inventory.
3. The company sold inventory that cost $5,000 for $10,150
cash.
4. Operating expenses incurred and paid during the year,
$4,500.
Sanchez Company engaged in the following transactions
during Year 2:
1. The company paid cash to purchase $10,800 of inventory.
2. The company sold Inventory that cost $9,200 for $16,750
cash.
3. Operating expenses incurred and paid during the year,
$5,500.
Sanchez uses the perpetual inventory system.
The balance in the inventory account shown on December 31,
Year 2 is
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