Using T-Accounts Brandy Company reported the following account balances at January 1:

During the month of January, Brandy Company had the following transactions:
1. Inventory costing $160,000 was purchased on account.
2. Inventory that had cost $150,000 was sold for $230,000.
3. Payments of $182,000 were received on accounts receivable.
4, Payments of $154,000 were made on accounts payable.

a. Prepare the journal entries for Brandy Company for January.

b. Prepare T-accounts for each of the balance sheet and income statement accounts included in the above entries, enter the beginning balances (where appropriate), enter the amounts recorded during January, and determine the balances at January 31.

Transcribed Image Text:

Cash Accounts Receivable Inventory Accounts Payable $15,000 48,000 35,000 21,000