Mgmt_200_Spring_2008_Homework_2_solution(1,28) - NAME: _...

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PUID _________________ Please write your name in BLOCK letters and in the format: Last name, First name. Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Homework 2 – due Monday, January 28, 2008 - SOLUTION IMPORTANT: This homework must be turned in on this sheet of pages (please staple). It is preferred that you print it out two-sided if at all possible. Assignments not completed on this form will not be graded. The grade for this assignment will be based on the correctness of a partial portion of the assignment – the full assignment will not be graded. Please print your name and PUID clearly and legibly in the spaces above. Nougat Corporation was founded on January 3, 2001. The company operates a retail store that sells hand-crafted chocolates. Below is the balance sheet as at December 31, 2006: Nougat Corporation Balance Sheet as at December 31, 2006 Cash 16,400 Accounts payable 19,500 Accounts receivable 43,200 Income tax payable 4,500 Inventory 28,000 Bank loan 55,000 Prepaid expenses 7,500 Capital stock 60,000 Equipment 86,000 Retained earnings 42,100 TOTAL: $181,100 TOTAL: $181,100 Required: a. Prepare journal entries to record the following transactions for 2007. 1. The corporation purchased inventory for sale during 2007 at a cost of $244,000. All purchases were made on account.
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This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue.

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Mgmt_200_Spring_2008_Homework_2_solution(1,28) - NAME: _...

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