1) Started the business by issuing $7,420 of common stock forcash. 2) The compan

Question

1) Started the business by issuing $7,420 of common stock forcash.
2) The company paid cash to purchase $4,560 of inventory.
3) The company sold inventory that cost $3,030 for $7,240 cash.
4) Operating expenses incurred and paid during the year,$2,510.

Smith Company engaged in the following transactions during2008:
1) The company paid cash to purchase $5,890 of inventory.
2) The company sold inventory that cost $6,990 for $15,200cash.
3) Operating expenses incurred and paid during the year,$3,400.

Note: Smith uses the perpetual inventory system.
The balance in the inventory account shown at December 31,2008 is:
$380. $430. $880. $630. The balance in the inventory account shown at December 31,2008 is: $380. $430. $880. $630. $380. $430. $880. $630.

Explanation / Answer

Answer $ 430 Explanation Inventory purchase   4,560 - Sales(cost)           3,030 Ending Inventory      1,530 2008 Beginning Inventory   1,530 +Purchases             5,890                                7,420 -Sales atcost           6,990 Balance                     430

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