Ask Question
11 November, 20:37

The Marchetti Soup Company entered into the following transactions during the month of June:

(1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system).

(2) paid $40,000 in salaries to employees for work performed during the month.

(3) sold merchandise that cost $120,000 to credit customers for $200,000.

(4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory $145,000.

Required:

(a) Analyze each transaction and show the effect of each on the accounting equation for a corporation.

+5
Answers (1)
  1. 11 November, 20:49
    0
    Kindly find the following transactions of Marchetti Soup Company during the month of June below in the Explanation section

    Explanation:

    Solution

    Transaction Account Title Debit Credit

    1. Inventory 165,000

    Accounts payable 165,000

    2. Salaries expense 40,000

    Cash 40,000

    3. Accounts receivable 200,000

    Sales 200,000

    Cost of merchandise sold 120,000

    Inventory 120,000

    4 Cash 180,000

    Accounts receivable 180,000

    5 Accounts payable 145,000

    Cash 145,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers