3 during february its first month of operations sally rides company purchased mercha 4352202

3.During February, its first month of operations, Sally Rides Company purchased merchandise for $180,000 on credit. Of that merchandise, $150,000 was sold during February. During March, Sally purchased $160,000 of merchandise on credit and sold merchandise that had cost her $164,000. Sally paid suppliers $174,000 during March.

Required:

Determine (a) cost of goods sold for March, (b) merchandise inventory at March 31, and (c) amounts owed creditors at March 31.

4.Best Cleaning Corporation had the following activities during April:

1.Collected cash of $38,000 from customers for services provided in March.

2.Incurred expenses of $30,000, of which 2/3 was paid during April.

3.Provided $44,000 of services to customers on credit.

4.Issued $200,000 of common stock.

5.Borrowed $60,000.

6.On April 30, purchased new equipment for $30,000, paying $10,000 down and signing a note for the remainder.

7.Paid $6,000 for expenses incurred during March.

Required:

For each item, indicate the amount of the effect on Best Cleaning’s net income for April. Indicate revenues with a plus (+) and expenses with a minus (-). If an item as no income effect, enter $0.

Alternative requirement:

Prepare entries in spreadsheet format.

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