Required: Several transactions occurred in March. Each is described separately i

Question

Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.

Please do not combine steps or accounts!

(Options for Account portion:Cash, Accounts Recievable, Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-In Capital, Retained Earnings, Leave Blank)

Transaction 5

Sales were $76,000. Cost of merchandise sold was 50% of its sales price. 40% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Explanation / Answer

Sr. No. Particulars Impact on account Debit Credit 1 Cash Increase 30400 Accounts receivable Increase 45600 Sales Increase 76000 2 Cost of merchandise Increase 38000 Formulae key- profit & Loss account Expense increase 38000 Sr. No. Particulars Impact on account Debit Credit 1 Cash Increase =+E4*0.4 Accounts receivable Increase =+E4*0.6 Sales Increase 76000 2 Cost of merchandise Increase =+E4*0.5 profit & Loss account Expense increase 38000

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