Question

The Marchetti Soup Company entered into the following transactions during the month of June:
(1) purchased inventory on account for $195,000 (assume Marchetti uses a perpetual inventory system);
(2) paid $50,000 in salaries to employees for work performed during the month;
(3) sold merchandise that cost $140,000 to credit customers for $250,000;
(4) collected $230,000 in cash from credit customers; and
(5) paid suppliers of inventory $175,000.
Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $70,000, $53,000, and $32,000, respectively.

Answer 1

Answer:

Cash account

                          debit                credit

opening            70,000

2)                                                50,000

4)                       230,000

5)                                                175,000

                         75,000

Accounts receivable account

                          debit                credit

opening            53,000

3)                       250,000

4)                                                230,000

                         73,000

Accounts payable account

                          debit                credit

opening                                     32,000

1)                                                 195,000

5)                        175,000                        

                                                  52,000

Merchandise inventory account

                          debit                credit

1)                        195,000

3)                                                 140,000

                          55,000

Wages expense account

                          debit                credit

2)                       50,000

Sales revenue account

                          debit                credit

3)                                                250,000

COGS account

                          debit                credit

3)                        140,000