Reference no: EM132958191

Kyle & J. Frankie Ltd (KJF) is a record label which started its operations on January 1, 2008. KJF Ltd is known for its dance mix of pop songs mashed-up with subliminal messages tailored for gym enthusiasts. Gym goers who listen to KJF music during their workout get that "extra pump" that they need to run the extra mile or lift the extra set.

Four years later, the balance sheet for Dec 31, 2011, reported the following account balances (there were no other accounts listed):

Cash $338
Property, Plant and Equipment (PP&E) $900
Retained Earnings $268
Dividend Payable $16
Accounts Receivable $54
Interest Payable $28
Loan from Bank $200
Accumulated Depreciation $500
Common Stocks $388
Inventory ?

During 2012 (January 1, 2012, to Dec 31, 2012) the following transactions occurred:

• Sales (of goods that costs $52) were $600 and collections from customers were $340.
• Paid inventory (Purchases) of $900 in cash.
• The employees of KJF earned $188 during the year. Cash payments to the employee were $144.
• Depreciation expense was $125.
• Interest expense was $50 and the ending balance of Interest Payable (as of Dec 31, 2012) was $58.
• KJF received cash of $280 as an advance from a customer. This amount represents a full payment for a special order of 50 CDs by their latest artist - Gina and Jenna Duo. By the end of the year, none of the 50 CDs was delivered.
• The only rental contract KJF ever had is with its office building's landlord. The rent is $30 per month. The rental payments paid in cash during the year amounted to $330.
• The owner, J. Frankie, bought 2 tickets for $46 in total to a comedy show at Broadway ComedyClub for a special night out with his date.
• The dividend payable of $16 was paid in full.
• Issued additional common stocks of $1,000.Assume KJF Ltd is a tax-exempt entity.

Problem a. What was the balance of the account Inventory on December 31, 2011?