How do the transactions affect the accounts

Reference no: EM132081167

Question: How do these transactions affect the accounts on the financial statements of company ABC Inc?

ABC purchases $580,000 of additional inventory on account during the year. The purchases are charged to accounts payable. Total payments made on account for the year were $527,729. Inventory (prior to any LCM write-down's) at August 31, 2017 totaled $128,436.

On September 1, 2016, the firm used $83,000 cash to purchase additional DEF Company common stock. Your firm intends to continue holding the stock as available-for-sale securities.

Reference no: EM132081167

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