Smith Company engaged in the following transactions during2007: 1) Started the b

Question

Smith Company engaged in the following transactions during2007:

1) Started the business by issuing $7,460 of common stock forcash.
2) The company paid cash to purchase $4,570 of inventory.
3) The company sold inventory that cost $3,030 for $7,370 cash.
4) Operating expenses incurred and paid during the year,$2,430.

Smith Company engaged in the following transactions during2008:
1) The company paid cash to purchase $5,790 of inventory.
2) The company sold inventory that cost $7,030 for $15,260cash.
3) Operating expenses incurred and paid during the year,$3,460.

Note: Smith uses the perpetual inventory system.
The amount of retained earnings at December 31, 2008 is:
$8,060. $6,310. $7,330. $6,680. Smith Company engaged in the following transactions during2007:

1) Started the business by issuing $7,460 of common stock forcash.
2) The company paid cash to purchase $4,570 of inventory.
3) The company sold inventory that cost $3,030 for $7,370 cash.
4) Operating expenses incurred and paid during the year,$2,430.

Smith Company engaged in the following transactions during2008:
1) The company paid cash to purchase $5,790 of inventory.
2) The company sold inventory that cost $7,030 for $15,260cash.
3) Operating expenses incurred and paid during the year,$3,460.

Note: Smith uses the perpetual inventory system.
The amount of retained earnings at December 31, 2008 is:
$8,060. $6,310. $7,330. $6,680. Smith Company engaged in the following transactions during2007:

1) Started the business by issuing $7,460 of common stock forcash.
2) The company paid cash to purchase $4,570 of inventory.
3) The company sold inventory that cost $3,030 for $7,370 cash.
4) Operating expenses incurred and paid during the year,$2,430.

Smith Company engaged in the following transactions during2008:
1) The company paid cash to purchase $5,790 of inventory.
2) The company sold inventory that cost $7,030 for $15,260cash.
3) Operating expenses incurred and paid during the year,$3,460.

Note: Smith uses the perpetual inventory system. The amount of retained earnings at December 31, 2008 is: $8,060. $6,310. $7,330. $6,680. Smith Company engaged in the following transactions during2007:

1) Started the business by issuing $7,460 of common stock forcash.
2) The company paid cash to purchase $4,570 of inventory.
3) The company sold inventory that cost $3,030 for $7,370 cash.
4) Operating expenses incurred and paid during the year,$2,430.

Smith Company engaged in the following transactions during2008:
1) The company paid cash to purchase $5,790 of inventory.
2) The company sold inventory that cost $7,030 for $15,260cash.
3) Operating expenses incurred and paid during the year,$3,460.

Note: Smith uses the perpetual inventory system.
The amount of retained earnings at December 31, 2008 is:
$8,060. $6,310. $7,330. $6,680.

Explanation / Answer

Answer 6,680. Explanation 2007                                                                     2008 Sales                 7,370                                      Sales                            15,260 -cost of goods sold    3,030                                    - cost of goods sold   7,030           GrossMargin            4,340                                          Gross Margin    8,230 -operating exp. 2,430                                   -operatingexpenses           3,460 NetIncome              1,910           Net Income    4,770                               Retained earnings -2008 Beg balance         1,910 NetIncome          4,770                            6,680

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.