Question

Prepare the summary entries necessary to determine the amount of cash paid to suppliers for each of the four independent situations below. Inventory Increase (Decrease) $ 5,900 Cash paid to suppliers Situation UM Cost of goods sold $390,000 390,000 95,000 95,000 Account payable Increase (Decrease) $ 0 6,900 6,900 (6,900) 30 points 5,900 (5,900) 8 02:27:17 Complete this question by entering your answers in the tabs below. Cash Paid General Journal Determine the amount of cash paid to suppliers for each of the four independent situations below. Situation Cost of Cash paid to suppliers Account Inventory payable Increase Increase (Decrease) (Decrease) $ 5,900 $ 0 6,900 5,900 6,900 (5,900) (6,900) goods sold $ 390,000 390,000 95,000 95,000 2 3 Cash Paid General Journal >

Answer 1

a) Cash Paid

Situation	Cost of goods Sold	Inventory Increase ( Decrease )	Accounts Payable Increase (Decrease)	Cash Paid to suppliers
1	$ 3,90,000	$5,900	0	$395,900.00
2	$ 3,90,000	0	$6,900	$383,100.00
3	$95,000	$5,900	$6,900	$94,000.00
4	$95,000	($5,900)	($6,900)	$96,000.00
Cash Paid to Suppliers
Cost of goods Sold		XXX
Add : Increase In Inventory		XX
Purchases		XXX
Deduct : Increase in Accounts Payable		XX
Cash Paid to Suppliers		XXX

b)

Journal Entries
1	Supplies a/c	Dr	3,90,000
	Inventory a/c	Dr	5,900
	to Cash a/c	Cr	395,900
2	Supplies a/c	Dr	3,90,000
	to Cash a/c	Cr	383,100
	to Accounts Payable a/c	Cr	6900
3	Supplies a/c	Dr	$95,000
	Inventory a/c	Dr	$5,900
	to Cash a/c	Cr	$94,000.00
	to Accounts Payable a/c	Cr	$6,900
4	Supplies a/c	Dr	$95,000
	Accounts Payable a/c	Dr	$6,900
	to Cash a/c	Cr	$96,000.00
	to Inventory a/c	Cr	$5,900