On January 5, Evergreen Market sold merchandise for $800 cash that cost $500.

To record this transaction, let’s handle its individual parts separately.

Change the date. Then, record only the amount of cash after the receipt of the $800. (Disregard, for the moment, any other changes, including changes in totals.)

Transcribed Image Text:

EVERGREEN MARKET BALANCE SHEET AS OF JANUARY 4 Assets Liabilities & Equity Cash $45,000 Note Payable $10,000 Inventory 5,000 Berg, Capital 40,000 Total $50,000 Total $50,000