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Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation:
Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5
Ho Designs experienced the following events during Year 1, its first year of operation:
- Started the business when it acquired $52,000 cash from the issue of common stock.
- Paid $21,400 cash to purchase inventory.
- Sold inventory costing $12,200 for $27,500 cash.
- Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period.
Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.
Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5
Ho Designs experienced the following events during Year 1, its first year of operation:
- Started the business when it acquired $52,000 cash from the issue of common stock.
- Paid $21,400 cash to purchase inventory.
- Sold inventory costing $12,200 for $27,500 cash.
- Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period.
Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.
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Financial Accounting
Authors: Karen Bird, Gene Imhoff
3rd Edition
0984200541, 9780984200542
