The Marchetti Soup Company entered into the following transactions during the mo

Question

The Marchetti Soup Company entered into the following transactions during the month of June: (a) purchased inventory on account for $185,000 (assume Marchetti uses a perpetual inventory system); (b) paid $48,000 in salaries to employees for work performed during the month; (c) sold merchandise that cost $136,000 to credit customers for $240,000; (d) collected $220,000 in cash from credit customers; and (e) paid suppliers of inventory $165,000.

Post the above transactions in the T-accounts given below. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $69,000, $51,000, and $30,000, respectively.

cash, inventory, sales revenue, salaries expense, accounts recievable, accounts payable, and costs of goods sold

The Marchetti Soup Company entered into the following transactions during the month of June: (a) purchased inventory on account for $185,000 (assume Marchetti uses a perpetual inventory system); (b) paid $48,000 in salaries to employees for work performed during the month; (c) sold merchandise that cost $136,000 to credit customers for $240,000; (d) collected $220,000 in cash from credit customers; and (e) paid suppliers of inventory $165,000.

Explanation / Answer

1) cash acc dr cr op balance 69000 salaries 48000 debtrs 220000 creditors 165000 cl bal 76000 289000 289000 2) sales revenue acc dr cr cash acc 240000 cl bal 240000 240000 240000 3) acc payable acc dr cr cash acc 165000 op bal 30000 purchases acc 245000 cl bal 110000 275000 275000 4) acc rec acc dr cr op balance 51000 sales acc 136000 cash acc 220000 cl bal 135000 271000 271000 5) salaries acc dr cr cash acc 48000 cl bal 48000 48000 48000

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