Sales and Purchase-Related Transactions for Seller and Buyer The following selec

Question

Sales and Purchase-Related Transactions for Seller and Buyer The following selected transactions were completed during June between Snipes Company and Beejoy Company Instructions: 1. Illustrate the effects on the accounts and financial statements of recording the following transactions for Snipes Company. Identify each transaction by date If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000 June 8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8 Balance Sheet Statement of Income Assets Liabilities + Stockholders Equity Cash Flows Statement Cash Accounts ReceivableInventoryNo Effect + Retained Earnings une 8 18,250 X -10,000 V June 8 Statement of Cash Flows Income Statement Operating Sales discounts X Sales returns and allowances X Delivery expense v Net income

Explanation / Answer

Balance Sheet Income Statement Cash flow statement Assets Liabilities Stockholders' equity Revenue - Expenses Nature Increase/Decrease Date Cash + Accounts Receivable + Inventory = Accounts Payable + Retained earnings June.8 + 18250 + + + 18250 18250 - Operating -18250 + + -10000 + + -10000 - 10000 Operating 10000 June.8 -400 -400 400 Operating -400

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