Use the Following for Questions

question 27

Multiple Choice

Use the following for questions
Sanchez Company engaged in the following transactions during 2015:
1) Started the business by issuing $42,000 of common stock for cash.
2) The company paid cash to purchase $26,400 of inventory.
3) The company sold inventory that cost $16,000 for $30,600 cash.
4) Operating expenses incurred and paid during the year,$14,000.
Sanchez Company engaged in the following transactions during 2016:
1) The company paid cash to purchase $35,200 of inventory.
2) The company sold inventory that cost $32,800 for $57,000 cash.
3) Operating expenses incurred and paid during the year,$18,000.
Note: Sanchez uses the perpetual inventory system.
-The balance in the inventory account shown at December 31,2016 is:

• A)$2,400.
• B)$12,800.
• C)$61,600.
• D)$28,800.

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Definitions:

Statehood

The condition of being recognized as an independent nation or the admission of a territory into a federation or union as a state.

Slavery

A system in which individuals are owned by others, denied freedom, and forced to work without compensation.

Balance of Power

is a diplomatic theory aiming to prevent any one nation or alliance from becoming too strong by maintaining equally distributed military and economic power among countries or groups of countries.

House of Representatives

is the lower chamber of the United States Congress, where members are elected to represent geographical districts for two-year terms.