Open the Alphacoa Exercise starter set spreadsheet.

Create accounts for each balance sheet item in the ledger; enter the current balance sheet amounts into the ledger accounts..

Stage 1: Create journal entries for each of the following transactions:

a. Purchase inventory on account for $650,000; terms 1%/10et 30

b. Collect $250,000 on trade credit accounts; paid at net due date

c. Pay $200,000 on trade credit accounts; paid at net due date

d. Sell product to customer: sale value $750,000; inventory cost $500,000; terms 1%/15et 30

e. Receive return of damaged merchandise from customer. Sale value $50,000; inventory cost value $40,000. Charge return back to supplier.

f. Collect payment on trade credit. Original invoice value $150,000. Customer has paid within the discount period.

g. Sell product to customer: sale value $400,000; inventory cost; $300,000; standard terms

h. Make payment on trade credit; original invoice $400,000; paid within the discount period

i. Sell product to customer: sale value $500,000; inventory cost $375,000; standard terms

j. Pay employees $125,000 for work completed.

k. Receive invoice and pay freight company $75,000 for merchandise shipments.

L. Account for depreciation expense: $15,000

m. Post journal entries to ledger accounts

N. Close out revenue and expense accounts: create income statement for the period

O. Close out net income account: create balance sheet for the end of the period

AND please explain how each transaction was calculated and why it goes in credit, and or debit

X Alphacoa Class Exercise Stage 1 Solution.xlsx Original Balance Sheet Stage 1 Ledger Template Sheet3 calculations Stage 1 solution 200,000 Current Assets Cash Accounts Receivable Inventory Total Current Assets Alphacoa Distributors Balance Sheet at I Deermber 2018 Current Liabilities 150.000 Accounts Payable 340,000 Total Current Liabilities 700,000 1,190,000 Long Term Liabilities Long Term Debt Total Long Term Liabilities 1.000.000 .300.000 Owner Equity 200,000 Com Equity Reid amnings 700.CCO Total Equity 700.000 790.000 Long Term Assets Gross Plant, Property & Equip Less Accumulated Deprecation Net Plant, Property & Equip 2000.NO 700.00 Total Long Term Assets 910.000 Total Assets 1,890.000 Total Liabilities and Equity 190.000 X Alphacoa Class Exercise Stage 1 Solution.xlsx Original Balance Sheet Stage 1 Ledger Template Sheet3 calculations Stage 1 solution 200,000 Current Assets Cash Accounts Receivable Inventory Total Current Assets Alphacoa Distributors Balance Sheet at I Deermber 2018 Current Liabilities 150.000 Accounts Payable 340,000 Total Current Liabilities 700,000 1,190,000 Long Term Liabilities Long Term Debt Total Long Term Liabilities 1.000.000 .300.000 Owner Equity 200,000 Com Equity Reid amnings 700.CCO Total Equity 700.000 790.000 Long Term Assets Gross Plant, Property & Equip Less Accumulated Deprecation Net Plant, Property & Equip 2000.NO 700.00 Total Long Term Assets 910.000 Total Assets 1,890.000 Total Liabilities and Equity 190.000