Levchenko Company purchased inventories from a vendor for $16,000 on July 1 The purchase was financed through a $10,000 note with the remainder paid in cash The vendor charged an additional $400 for shipping, on account Levchenko paid a moving company $700 cash to move the inventory to a different warehouse Interest on the note totaled $50, payable in August a Determine the cost to be assigned to the inventory $Answer b Record the transactions using the financial statement effects template Note Use negative signs with your answers, when appropriate Select N A as your answer if a part of the accounting equation is not affected Balance Sheet Income Statement Noncash Contributed Earned Transaction Cash Asset Asset Liabilities Capital Capital Revenues Expenses Net Income a Inventory purchase Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A b Shipping charge Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A c Moving cost Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A d Interest incurred Answer Answer Answer Answer Answer Answer AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN A Totals

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Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in

Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 for shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August.

a. Determine the cost to be assigned to the inventory. $Answer

b. Record the transactions using the financial statement effects template.

Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected.

	Balance Sheet	Income Statement
			Noncash				Contributed		Earned
Transaction	Cash Asset	+	Asset	=	Liabilities	+	Capital	+	Capital	Revenues	-	Expenses	=	Net Income
a. Inventory purchase	Answer		Answer		Answer				Answer			Answer		Answer
	AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A				AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A			AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A
b. Shipping charge	Answer		Answer		Answer				Answer			Answer		Answer
	AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A				AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A			AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A
c. Moving cost	Answer		Answer		Answer				Answer			Answer		Answer
	AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A				AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A			AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A
d. Interest incurred	Answer		Answer		Answer				Answer			Answer		Answer
	AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A		AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A				AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A			AnswerAccounts payableAccounts receivableCashInterest expenseInterest payableInventoryMoving expenseNote payableRetained earningsShipping expenseN/A
Totals