Kramer's Kitchen sells pre-packaged meals to consumers. During 2016, the company purchased inventory on account at a cost of $16,920,000. The following T-accounts reflect information contained in the company's 2016 and 2015 balance sheets.
A. Prepare the journal entry, using the financial statement effects template and in journal entry form, to record Kramer's Kitchen's purchases during 2016.
B. How much will Kramer's Kitchen report at December 31, 2016 on its balance sheet for inventory? For Accounts Payable?
C. How much will Kramer's Kitchen report for the year ending December 31, 2016 on its income statement as Cost of Goods Sold?

Question

Kramer's Kitchen sells pre-packaged meals to consumers. During 2016, the company purchased inventory on account at a cost of $16,920,000. The following T-accounts reflect information contained in the company's 2016 and 2015 balance sheets.
  A. Prepare the journal entry, using the financial statement effects template and in journal entry form, to record Kramer's Kitchen's purchases during 2016.
B. How much will Kramer's Kitchen report at December 31, 2016 on its balance sheet for inventory? For Accounts Payable?
C. How much will Kramer's Kitchen report for the year ending December 31, 2016 on its income statement as Cost of Goods Sold?

Quizplus · Accepted Answer

The Answer of Kramer's Kitchen sells pre-packaged meals to consumers. During 2016, the company purchased inventory on account at a cost of $16,920,000. The following T-accounts reflect information contained in the company's 2016 and 2015 balance sheets.
  A. Prepare the journal entry, using the financial statement effects template and in journal entry form, to record Kramer's Kitchen's purchases during 2016.
B. How much will Kramer's Kitchen report at December 31, 2016 on its balance sheet for inventory? For Accounts Payable?
C. How much will Kramer's Kitchen report for the year ending December 31, 2016 on its income statement as Cost of Goods Sold?

Kramer's Kitchen Sells Pre-Packaged Meals to Consumers