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 $205,000 (assume marchetti uses a perpetual inventory system); (2) paid $52,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $260,000 that had a cost of $144,000; (4) collected $240,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $185,000. 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 $71,000, $55,000, and $34,000, respectively. note: enter the transaction number in the column next to the amount.

the marchetti soup company entered into the following transactions during the month of june: (1) purchased inventory on account for $205,000 (assume marchetti uses a perpetual inventory system); (2) paid $52,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $260,000 that had a cost of $144,000; (4) collected $240,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $185,000. 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 $71,000, $55,000, and $34,000, respectively. note: enter the transaction number in the column next to the amount.

Answer

Explanation:

Step1: Analyze transaction (1)

Inventory is purchased on - account. Debit Inventory and credit Accounts Payable. Inventory (Debit): (1) $205,000$ Accounts Payable (Credit): (1) $205,000$

Step2: Analyze transaction (2)

Salaries are paid in cash. Debit Salaries Expense and credit Cash. Salaries Expense (Debit): (2) $52,000$ Cash (Credit): (2) $52,000$

Step3: Analyze transaction (3)

Goods are sold on - account. Debit Accounts Receivable and credit Sales Revenue. Also, debit Cost of Goods Sold and credit Inventory. Accounts Receivable (Debit): (3) $260,000$ Sales Revenue (Credit): (3) $260,000$ Cost of Goods Sold (Debit): (3) $144,000$ Inventory (Credit): (3) $144,000$

Step4: Analyze transaction (4)

Cash is collected from credit customers. Debit Cash and credit Accounts Receivable. Cash (Debit): (4) $240,000$ Accounts Receivable (Credit): (4) $240,000$

Step5: Analyze transaction (5)

Payment is made on - account to suppliers. Debit Accounts Payable and credit Cash. Accounts Payable (Debit): (5) $185,000$ Cash (Credit): (5) $185,000$

Cash T - account

Amount Transaction Number
Beginning balance $71,000$
Debit $240,000$ (4)
Credit $52,000$ (2)
Credit $185,000$ (5)
Ending balance $74,000$

Accounts Receivable T - account

Amount Transaction Number
Beginning balance $55,000$
Debit $260,000$ (3)
Credit $240,000$ (4)
Ending balance $75,000$

Inventory T - account

Amount Transaction Number
Beginning balance $0$
Debit $205,000$ (1)
Credit $144,000$ (3)
Ending balance $61,000$

Accounts Payable T - account

Amount Transaction Number
Beginning balance $34,000$
Credit $205,000$ (1)
Debit $185,000$ (5)
Ending balance $54,000$

Sales Revenue T - account

Amount Transaction Number
Beginning balance $0$
Credit $260,000$ (3)
Ending balance $260,000$

Cost of Goods Sold T - account

Amount Transaction Number
Beginning balance $0$
Debit $144,000$ (3)
Ending balance $144,000$

Salaries Expense T - account

Amount Transaction Number
Beginning balance $0$
Debit $52,000$ (2)
Ending balance $52,000$

Answer:

Cash ending balance: $74,000$ Accounts Receivable ending balance: $75,000$ Inventory ending balance: $61,000$ Accounts Payable ending balance: $54,000$ Sales Revenue ending balance: $260,000$ Cost of Goods Sold ending balance: $144,000$ Salaries Expense ending balance: $52,000$