Purchase of goods for resale: Financial events series, part 8 of 29
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TechnolOntario buys $1,500 of software inventory for resale.
The journal entry would record this event as a debit of $1,500 for computer inventory assets and a credit of $1,500 for cash assets.
The financial statements would read:
Information on this series
To demonstrate how various business transactions and other economic events impact the financial statements, this series tracks the accounts of the first fiscal year of a fictional start-up company called TechnolOntario, Inc. Common financial events are introduced and recorded one by one, and they accumulate on the financial statements as TechnolOntario’s fiscal year progresses.
Note that together these examples form a series of 29 articles. Check our complete list of accounting examples to specifically select which ones you’d like to see. Or you can follow the series from start to finish. This article is part 8 of 29.
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References
Markle, K. (2004, August). Introduction to Accounting. Presentation delivered at Schulich School of Business, York University, Toronto, Canada.
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Introduction: Financial events series, part 1 of 29 The examples in this series demonstrate how different business transactions are recorded in the financial statements.
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