Prepare the Summary Entries Necessary to Determine the Amount of Cash

question 130

Essay

Prepare the summary entries necessary to determine the amount of cash paid to suppliers for each of the four independent situations below.
$$\begin{array} { c c c c c } \text { Situation } & \begin{array} { c } \text { Cost of } \\\text { goods sold }\end{array} & \begin{array} { c } \text { Inventory } \\\text { inc (dec) }\end{array} & \begin{array} { c } \text { Account } \\\text { payable } \\\text { inc (dec) }\end{array} & \begin{array} { c } \text { Cash paid } \\\text { to suppliers }\end{array} \\1 & 400,000 & 6,000 & 0 & \\2 & 400,000 & 0 & 7,000 & \\3 & 100,000 & 6,000 & 7,000 & \\4 & 100,000 & ( 6,000 ) & ( 7,000 ) &\end{array}$$

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Definitions:

Security Needs

Denotes the essential protection and safety measures individuals or entities seek to ensure their well-being and safeguard against risks.

Maslow's Hierarchy

is a psychological theory proposed by Abraham Maslow that ranks human needs in a pyramid, from basic physical needs to higher-level psychological needs and self-actualization.

Organization

Any group or aggregation of individuals into a purposeful entity, such as those found in business and industry, government, and the social community; also, the process of aligning people and resources to accomplish tasks (visions, goals, initiatives, and the like).

Recognition Needs

The requirement for acknowledgment and appreciation from others, often as a motivator in workplace settings.