Reference no: EM132488768
The following events occurred in 2016 for the Keahi Company.
September 9
Received delivery of $24,000 merchandise for later sale. The merchandise was purchased on account.
September 25
Sold one-quarter of the September 9th delivery for $7,200. Keahi received $4,500 in cash and an accounts receivable for $2,700.
September 30
Paid $13,000 toward merchandise received on September 9th.
October 11
Received $2,700 owed from September 25th sale.
October 17
Paid remaining $11,000 toward merchandise received on September 9th.
October 29
Sold remaining merchandise for $24,300, receiving entire amount in cash.
Question a) Identify the proper amount and month to record cash inflows and outflows on the statement of cash flows for each of the above transactions
Question b) Identify the proper amount and month to record revenues and expenses on the income statement for each of the above transactions.
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