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Question

7:Hannas Stuff pays $15 each for 50 clay figurines that will be sold to customers.

A:

-

750

Cash / +750 Inventory

L: NE

E: NE Net Income: N/A

Cash Flow: -750 OA

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10. Hannas Stuff sells 10 of the figurines (purchased in Q.7) for $40 each. (Hint

-

do one balanced

transaction for the revenue, a second balanced transaction for the expense.)

A: -150 Inventory

L: NE

E: -150 Retained Earnings for cost of goods sold (10 x $15)

Net Income: -150 Expense

Cash Flow: N/A

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Hanna's Stuff sells 20 of the clay figurines purchased back in Q7. This is a new customer that Hanna's Stuff is trying to develop a relationship with so they sell the inventory at cost. (Hint - See Q10. work on this in 2 rounds of entries again.)

Top Answer

10) Revenue entry :- A: -300 inventory L: NE E: -300 retained earnings for cost of goods sold (20 x $15) Net... View the full answer

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