The Account The following transactions occurred during January, the first month of operations for Ruby Corporation. Prepare journal entries and create a T-account for inventory that includes the following five transactions. Hint: When inventory is sold, it should be expensed to a Cost of Goods Sold expense account.

1 Purchased $950 of inventory on account. 2 Purchased $1,800 of inventory on account. 3 Sold inventory with an original cost of $450. 4 Purchased $1,100 of inventory on account. 5 Sold inventory with an original cost of $1,500. General Journal Description Ref. Debit Credit (1) 0 0 0 0 To record purchase of inventory on account. (2) 0 0 0 0 To record purchase of inventory on account. (3) 0 0 0 0 To record cost of inventory sold. (4) 0 0 > > 0 0 To record purchase of inventory on account. (5) 0 0 > 0 0 To record cost of inventory sold. Inventory 0 0 0 0 0 0 (1) (2) (3) (4) (5) Balance 0 0 0 0 0 0