Question
Brief Exercise 2-3 T-accounts [LO2-3] The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for
Brief Exercise 2-3 T-accounts [LO2-3]
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $170,000 (assume Marchetti uses a perpetual inventory system); (2) paid $45,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $130,000 to credit customers for $225,000; (4) collected $205,000 in cash from credit customers; and (5) paid suppliers of inventory $150,000. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $67,500, $48,000, and $27,000, respectively. (Enter the transaction number in the column next to the amount.)
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