a Total cost of equipment 40,000 Portion paid by check to seller 10,000 Gave note payable to seller 30,000 Total cost of equipment 40,000 b Bought inventory on account 90,000 C Credit sales were 120,000 Cost of goods sold was 70,000 d Paid rent for current month 5,000 e Paid insurance for next year 6,000 Parta Bought equipment. Some of the cost of the equipment was paid by check, and some was still owed to the seller. The company signed a note payable to the seller for the portion that was still owed. The company anticipates that it will be able to borrow from the bank within two to three weeks, and use that bank loan to pay the note to the seller. Part b. Purchased inventory on account at a cost of (see attached file). The company uses the perpetual inventory method for keeping track of inventory Part c. See separate document. The company sold merchandise to its customers on account. The cost of the merchandise it sold is also given in the separate document. Part d. Paid rent for the business premises for the current month. Parte. Paid insurance premium, but the policy term (when the coverage is valid) does not begin until next fiscal year. Part f. Paid on account for part of the inventory bought earlier in the fiscal period. Part g. Collected from customers who owed us money because they bought from us on open account.| Parth. Depreciation expense on the equipment amounted to this much for the fiscal period. a Total cost of equipment 40,000 Portion paid by check to seller 10,000 Gave note payable to seller 30,000 Total cost of equipment 40,000 b Bought inventory on account 90,000 C Credit sales were 120,000 Cost of goods sold was 70,000 d Paid rent for current month 5,000 e Paid insurance for next year 6,000 Parta Bought equipment. Some of the cost of the equipment was paid by check, and some was still owed to the seller. The company signed a note payable to the seller for the portion that was still owed. The company anticipates that it will be able to borrow from the bank within two to three weeks, and use that bank loan to pay the note to the seller. Part b. Purchased inventory on account at a cost of (see attached file). The company uses the perpetual inventory method for keeping track of inventory Part c. See separate document. The company sold merchandise to its customers on account. The cost of the merchandise it sold is also given in the separate document. Part d. Paid rent for the business premises for the current month. Parte. Paid insurance premium, but the policy term (when the coverage is valid) does not begin until next fiscal year. Part f. Paid on account for part of the inventory bought earlier in the fiscal period. Part g. Collected from customers who owed us money because they bought from us on open account.| Parth. Depreciation expense on the equipment amounted to this much for the fiscal period
