Journalize the Following Transactions for ABC, Inc

question 5

Essay

Journalize the following transactions for ABC, Inc.
A) Purchases of inventory on account, $74,500
B) Sales on account, $110,000
C) Cost of goods sold (perpetual inventory system), $50,500
D) Collections on account, $48,310

• A) Purchases of inventory on account, $74,500
• B) Sales on account, $110,000
• C) Cost of goods sold (perpetual inventory system), $50,500
• D) Collections on account, $48,310

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Definitions:

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Retained Earnings

Profits that a company keeps or retains after paying dividends to shareholders, which are often reinvested in the business or used to pay down debt.

Accumulated Other Comprehensive Income

The cumulative effects of other comprehensive income items reported separately in the Stockholders’ Equity section of the balance sheet.

Long-Term Investments

Assets intended to be held for more than one fiscal year, including bonds, stocks, or real estate, aiming for future returns.