ACCT 3110 CHAPTER 2 (SOLVED) CORRECTLY TO PASS
Issued 100,000 shares of common stock in exchange for $500,000 cash.
Answer - Cash 500,000
Common stock 500,000
Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in
cash and a note payable was signed for the balance owed. Answer - Furniture
and fixtures 100,000
Note payable 60,000
Cash 40,000
Purchased inventory on account at a cost of $200,000. The company uses the
perpetual inventory system. Answer - Inventory 200,000
Accounts payable 200,000
Credit sales for the month totaled $280,000. The cost of the goods sold was
$140,000. Answer - Accounts receivable 280,000
Sales revenue 280,000
Cost of goods sold 140,000
Inventory 140,000
Paid $6,000 in rent on the store building for the month of June. Answer - Rent
expense 6,000
Cash 6,000
Issued 100,000 shares of common stock in exchange for $500,000 cash.
Answer - Cash 500,000
Common stock 500,000
Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in
cash and a note payable was signed for the balance owed. Answer - Furniture
and fixtures 100,000
Note payable 60,000
Cash 40,000
Purchased inventory on account at a cost of $200,000. The company uses the
perpetual inventory system. Answer - Inventory 200,000
Accounts payable 200,000
Credit sales for the month totaled $280,000. The cost of the goods sold was
$140,000. Answer - Accounts receivable 280,000
Sales revenue 280,000
Cost of goods sold 140,000
Inventory 140,000
Paid $6,000 in rent on the store building for the month of June. Answer - Rent
expense 6,000
Cash 6,000
