Busoni Company is a wholesaler During one accounting

period it #4121
Busoni Company is a wholesaler. During one accounting period, it carried out the following
transactions (all expressed in CU, except where clearly marked):1 Creation of the business and
provision by shareholders of a piece of equipment in the amount of 100 CU, and of cash for 40
CU2 Merchandise for resale was purchased: 60 (on account).3 A debt was received from the
banker: 100 CU.4 Personnel expenses were incurred for the period: salaries and social
charges: 35 (paid cash).5 Merchandise was sold to customers: 50 (on account) and 40 (paid
cash). The merchandise that was sold had been purchased for 38 CU.6 Cash was received
from customers: 42 CU.7 Merchandise suppliers were given a partial payment: 55 CU.8 The
assets brought as a capital contribution when the business was created are expected to have a
useful life of five years. The loss of value of the asset is expected to be the same each year.9
The value of the merchandise on hand at the end of the year (ending inventory) is 22
CU.RequiredShow the impact of each event on the financial statements with T-Accounts. You
have the following choice:1 To record the purchases of merchandise as inventory first
(‘perpetual inventory system’) or2 To record these purchases as expenses first (‘periodic
inventory system’). Please mention clearly the choice you made between options (1) and (2).
Use the following structure.
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Busoni Company is a wholesaler During one accounting period it

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