Inferring Transactions from Financial Statements El Puerto de Liverpool (Liverpool) is a large retailer in Mexico. The following accounts are selected from its annual report for the fiscal year ended December 31, 2013. . For the fiscal year ended December 31, 2013 , Liverpool purchased merchandise inventory costing 46,231,304 thousand Mexican pesos. Assume that all purchases were made on account. The following T-accounts reflect information contained in the company's 2013 and 2012 balance sheets (in thousands of Mexican pesos). nventories Suppliers (Accounts Payable) 12/31/2012 Bal. 10,879,497 9,966,819 12/31/2012 Bal. 12/31/2013 Bal. 11,743,219 11,133,124 12/31/2013 Bal. a. Prepare the entry, using the financial statement effects template and in journal entry form, to record Liverpool's purchases for the 2013 fiscal year. b. What amount did Liverpool pay in cash to its suppliers for the fiscal year ended December 31, 2013 ? Assume that Suppliers (Accounts payable) is affected only by transactions related to inventory. 0 c. Prepare the entry, using the financial statement effects template and in journal entry form, to record cost of goods sold for the year ended December 31, 2013. Note: Use a negative sign with your answers, when appropriate. Noncash Contra Contrib Earned Transaction Cash Asset Assets Assets Liabilities Capital Capital Revenues Expenses = Net income a. To record purchases for 2013. 0 0 0 O 0 0 c. To record cost of goods sold. 0 0 0 0 0 o o 863,722 0 46,231,304 0 (45,367,582) 0 45,367,582 (45,367,582) General Journal Description Debit Credit a 0 O To record purchases for 2013 C. + 0 O O Accounts payable Ple Inventories question. Cost of goods sold