Question

Lowe's is the second-largest home improvement retailer in the world, with 2,002 stores. During its fiscal year ended in February 2019, Lowe's purchased merchandise inventory at a cost of $49,569 ($ millions). Assume all purchases were made on account and accounts payable is only used for inventory purchases. The following T-accounts reflect information contained in the company's February 2018 and 2019 balance sheets. Merchandise Inventories Feb. 2018 Bal. 8,911 Feb. 2019 Bal. 9,458 Accounts Payable 5,124 Feb. 2018 Bal. 5,633 Feb. 2019 Bal. a. Use the financial statement effects template to record Lowe's purchases during fiscal year ended February 2019. Use a negative sign with answers, if appropriate. Balance Sheet Income Statement Transaction Cash Asset Noncash Assets

Answer 1

The financial statement effects template records Lowe's purchases for the fiscal year ended February 28, 2019 as follows:

Transaction        Assets                       =   Liabilities   +   Equity

Purchases          $0       +   $49,569    =   $49,569     +    $0

                          Inventory                         Accounts Payable

The accounts equally affected by the purchases on account are the Inventory and the Accounts Payable.

Data Analysis:

Merchandise Inventory $49,569 Accounts Payable $49,569

Thus, with the purchases of merchandise during the fiscal year at a cost of $49,569, the Assets (inventory) and Liabilities (accounts payable) are increased by the same amount.

Related question on the financial statement effects at brainly.com/question/16362041