Prepare the Summary Entries Necessary to Determine the Amount of Cash

question 101

Essay

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

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Definitions:

AW Clutch

A component in automatic transmissions designed to engage and disengage power flow, facilitating gear changes.

Engine Flywheel

A rotating mechanical device mounted on the engine crankshaft to store rotational energy, helping to maintain engine smoothness and driveability.

Clutch Pack

An assembly of multiple friction discs and steel plates in an automatic transmission that engage and disengage drive.

Clutch Pack

A component of an automatic transmission consisting of multiple discs and plates that engage and disengage to change gears.