The Records of Jimmy Company Show 2014 Purchases of $90,000

question 109

Essay

The records of Jimmy Company show 2014 purchases of $90,000. An actual count revealed a 2014 ending inventory of $8,000. The 2014 beginning inventory was $5,000. What was cost of goods sold for 2014?

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to dividends and, in many cases, voting rights.

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Subscriptions Receivable

An amount owed by customers for subscription services or products that have been provided but not yet paid for.