Questions re: Accounting for Non-Accountants 2nd Ed.

[garryg4]

Hi, newbie here. I have been reading AfN-A and am confused about 2
issues:
1. At the top of P. 59 it states that the company bought some small tools that cost a total of $1,625. Yet, in the Income Statement in Fig. 4.1 the
value posted for Tools Expense is only $50. What am I missing here?

2. In Fig. 7.12 the sum of the debits is obviously $64,000 instead of
$54,000. Using the $64,000 value this would make the difference
between credits and debis $29,400 instead of $19,400. If this is so, why do the credits and debits still balance in Fig 7.13?

Garryg4

[garryg4]

After furthur reading I found that the correct value of $29,400 was posted in the Trial Balance in Fig. 7.19 but that the inventory value
posted in Fig. 7.13 which was $20,800 was reduced to $10,800 when
it was posted in the Trial Balance in Fig. 7.19. This swap kept the
credits and debits in balance.

I did not find a 'page' for the Inventory Account in the General Ledger
but the Cost of Goods (Account #501) required a credit of $2,200 to
reduce it to $0. Apparently this credit should have been applied to the
initial Inventory value of $13,000 which would have made the
Inventory value $10,800- as posted in Fig. 7.19.

Surely other readers of the book must have spotted these discrepancies.

Garryg4

[garryg4]

Hello out there.
If any living person peruses this topic perhaps they can address my qestion re: the discrepancy between the stated value of $1625 for tool
purchases during 2010 versus the value of $50 posted in the Fig. 4.1
income statement!