Solved

The Puzzle Maze Company Sells Games and Puzzles Using a Perpetual

Question 106

Essay

The Puzzle Maze Company sells games and puzzles using a perpetual inventory method. The following transactions took place during the month of April.
1 Paid $12,000 in advance for rent.
3 Purchased supplies for the office paying cash in the amount of $1,560.
4 Cash sales in the amount of $3,450 and credit sales of $1,240 were received for puzzles sold. Inventory cost was $2,345
8 Purchased inventory on account in the amount of $2,345.
14 Paid wages of $2,367. The wages had not been previously accrued.
16 Received cash sales in the amount of $1,246; the cost of inventory sold was $623.
24 Paid for the inventory purchased on April 8.
26 Paid the utility bill for $256 and paid for internet access in the amount of $175.
29 Purchased advertising on account in the amount of $650. The advertising charge was for three months, starting May 1.
30 Received cash sales in the amount of $2,450 and credit sales of $3,240 for puzzles sold.
Inventory costs were $2,845.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents