Recording an Inventory Purchase FSET

Shields Company has purchased inventories incurring the following costs: (a) the invoice amount of $300, financed through a $250 note with the remainder paid in cash, (b) shipping charges of $15 on account, (c) interest of $5 accrued on the $250 borrowed to finance the purchase, and (d) $4 on account for the cost of moving the inventory to the companys warehouse.

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.

	Balance Sheet												Income Statement
			Noncash				Contributed		Earned
Transaction	Cash Asset	+	Asset	=	Liabilities	+	Capital	+	Capital				Revenues	-	Expenses	=	Net Income
a. Purchase inventory	Answer		Answer		Answer		Answer		Answer				Answer		Answer		Answer
b. Shipping charges	Answer		Answer		Answer		Answer		Answer				Answer		Answer		Answer
c. Interest on note	Answer		Answer		Answer		Answer		Answer				Answer		Answer		Answer
d. Cost of moving inventory	Answer		Answer		Answer		Answer		Answer				Answer		Answer		Answer