Use the following information for questions 1-5:
Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.
Stan's Surf Shack purchased 5 surfboards for $200 each.Later it purchased 2 more surfboards for $250 each.Stan's uses the perpetual inventory system.Assume that 6 surfboards were sold during the period for $350 cash each.

-Assume that Stan's Surf Shack purchased the first five surfboards on account.How would the purchase transaction affect its financial statements?

Question

Use the following information for questions 1-5:
Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.
Stan's Surf Shack purchased 5 surfboards for $200 each.Later it purchased 2 more surfboards for $250 each.Stan's uses the perpetual inventory system.Assume that 6 surfboards were sold during the period for $350 cash each.
 
-Assume that Stan's Surf Shack purchased the first five surfboards on account.How would the purchase transaction affect its financial statements?

Quizplus · Accepted Answer

The Answer of Use the following information for questions 1-5:
Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.
Stan's Surf Shack purchased 5 surfboards for $200 each.Later it purchased 2 more surfboards for $250 each.Stan's uses the perpetual inventory system.Assume that 6 surfboards were sold during the period for $350 cash each.
 
-Assume that Stan's Surf Shack purchased the first five surfboards on account.How would the purchase transaction affect its financial statements?

Use the Following Information for Questions 1-5