Question
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased...
The Marchetti Soup Company entered into the following
transactions during the month of June: (1) purchased inventory on
account for $225,000 (assume Marchetti uses a perpetual inventory
system); (2) paid $56,000 in salaries to employees for work
performed during the month; (3) sold merchandise that cost $152,000
to credit customers for $280,000; (4) collected $260,000 in cash
from credit customers; and (5) paid suppliers of inventory
$205,000.
Analyze each transaction and show the effect of each on the
accounting equation for a corporation. (Amounts to be
deducted should be indicated by a minus sign. Enter the net change
on the accounting equation.)
Homework Answers
Answer #1
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