Hobson Company had the following transactions relating to its accounts payable Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions a Purchases $1,260 of inventory on credit b Sells inventory for $1,650 on credit c Records $1,260 cost of sales for transaction b d Receives $1,650 cash toward accounts receivable e Pays $1,260 cash to settle accounts payable Note For each account category, indicate the appropriate account name Enter N A for any account category that is not used for a given transaction Note Indicate a decrease in an account category by including a negative sign with the amount Balance Sheet Income Statement Transaction Cash Asset Noncash Assets Liabilities Contrib Capital Earned Capital Revenues Expenses Net Income a Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A b Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A c Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A d Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A e Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN A

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Posted on Jul 17, 2024

Hobson Company had the following transactions relating to its accounts payable. Use the financial statement effects template to identify the effects (both amounts and accounts)

Hobson Company had the following transactions relating to its accounts payable. Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions. a. Purchases $1,260 of inventory on credit. b. Sells inventory for $1,650 on credit. c. Records $1,260 cost of sales for transaction b. d. Receives $1,650 cash toward accounts receivable. e. Pays $1,260 cash to settle accounts payable. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.

	Balance Sheet									Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues	Expenses	=	Net Income
a.	Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
b.	Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
c.	Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
d.	Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
e.	Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A