The Pet Store experienced the following events for the 2016 accounting period: 1. Acquired $60,000 cash from the issue of common stock.
2. Purchased $65,000 of inventory on account.
3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
4. Sold inventory on account that cost $38,000 for $71,000.
5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost.
6. Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150.
7. Collected $58,300 cash from accounts receivable.
8. Paid $59,200 cash on accounts payable.
9. Paid $2,600 for advertising expense.
10. Paid $3,100 cash for insurance expense.
THE PET STORE
Horizontal Statements Model for 2016
Balance Sheet Income Statement
Statement of Cash Flow ExpenseNet Income Liabilities Accounts+ Payable Assets Stockholders' Equity Revenue Accounts Inventory Receivable Retained Earnings Common+ Events
1. Stock
2. Pur inv
3. Freight
4a. Sold inv Stock 60,000+ 60,000 FA OA OA 60,000 +
4b. Cost
5. Pd. frt
6a. Ret. sale
6b. Ret. inv
7. | Coll, AR
8. Pd. AP
9. Pd. exp
10 Pd. exp
Total 60,000 + 60,000 이 60.000