QQuestionAnatomy and Physiology
QuestionAnatomy and Physiology
Question: Question 11 / 12 A company started the year with $\$ 10,1$ of Inventory. Purchases for resale during the year were $\$ 20,1$. Inventory on... Question 11 / 12
A company started the year with $\$ 10,1$ of inventory. Purchases for resale during the year were $\$ 20,1$. Inventory on December 31 is $\$ 5,1$. What's the cost of goods sold?
$\$ 5,1$
$\$ 10,1$
$\$ 25,1$
$\$ 30,1$
$\$ 35,1$
Question 12 / 12
A company sells 10,000 shares of previously authorized stock at the par value of $\$ 1$ per share. What's the correct entry to record the transaction?
Debit cash $\$ 10,1$, credit capital stock $\$ 10,1$
Debit capital stock $\$ 100,1$, credit cash $\$ 100,1$
Debit cash $\$ 100,1$, credit capita 11 stock $\$ 100,1$
Debit cash $\$ 100,1$, credit treasury stock $\$ 100,1$
Debit cash $\$ 1$, credit capital stock $\$ 1$
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Step 1: Calculate the total inventory available at the end of the year.
Total inventory available = $10,000 + $20,000 = $30,000
This is the sum of the starting inventory and purchases made during the year. Total inventory available = Starting inventory + Purchases
Step 2: Calculate the cost of goods sold (COGS) by subtracting the ending inventory from the total inventory available.
COGS = $30,000 - $5,00
COGS = Total inventory available - Ending inventory
Final Answer
COGS = $30,000 - $5,00
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