Question
Illustrate the effects on the accounts and financial statements of the following related transactions of Bigsur Inc. If no account or activity is affected, select
Illustrate the effects on the accounts and financial statements of the following related transactions of Bigsur Inc. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.
a. Purchased $200,000 of merchandise from Central Coast Co. on account, terms 1/10, n/30.
Balance Sheet | |||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||
+ | = | + | |||||||
fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 | ||||||
Statement of Cash Flows | Income Statement | ||||||||
fill in the blank 10 | fill in the blank 12 |
b. Paid the amount owed on the invoice within the discount period.
Balance Sheet | |||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||
+ | = | + | |||||||
fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | ||||||
Statement of Cash Flows | Income Statement | ||||||||
fill in the blank 22 | fill in the blank 24 |
c. Discovered that $30,000 of the merchandise was defective and returned items, receiving credit.
Balance Sheet | |||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||
+ | = | + | |||||||
fill in the blank 29 | fill in the blank 30 | fill in the blank 31 | fill in the blank 32 | ||||||
Statement of Cash Flows | Income Statement | ||||||||
fill in the blank 34 | fill in the blank 36 |
d. Purchased $17,500 of merchandise from Central Coast Co. on account, terms 1/10, n/30.
Balance Sheet | |||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||
+ | = | + | |||||||
fill in the blank 41 | fill in the blank 42 | fill in the blank 43 | fill in the blank 44 | ||||||
Statement of Cash Flows | Income Statement | ||||||||
fill in the blank 46 | fill in the blank 48 |
e. Received a check from Central Coast Co. for the balance owed from the return in (c), after deducting for the purchase in (d).
Balance Sheet | |||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||
+ | = | + | |||||||
fill in the blank 54 | fill in the blank 55 | fill in the blank 56 | |||||||
Statement of Cash Flows | Income Statement | ||||||||
fill in the blank 60 |
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