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 2015 and 2016 balance sheets.
A. What amount did Kramer's Kitchen pay in cash to its suppliers during 2016?
B. What amount will Kramer's Kitchen report as Accounts Payable on its balance sheet at December 31, 2016?

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 2015 and 2016 balance sheets.
  A. What amount did Kramer's Kitchen pay in cash to its suppliers during 2016?
B. What amount will Kramer's Kitchen report as Accounts Payable on its balance sheet at December 31, 2016?

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 2015 and 2016 balance sheets.
  A. What amount did Kramer's Kitchen pay in cash to its suppliers during 2016?
B. What amount will Kramer's Kitchen report as Accounts Payable on its balance sheet at December 31, 2016?

Kramer's Kitchen Sells Pre-Packaged Meals to Consumers