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On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation: 1. Started the business by issuing common stock for $36,000 cash. 2. Paid $24,000 cash to purchase inventory. 3. Sold merchandise that cost $17,000 for $36,000 on account. 4. Collected $32,000 cash from accounts receivable. 5. Paid $8,300 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table. provide appropriate account titles for the Retained Earnings amounts. b-1. Prepare an income statement. b-2. Prepare a balance sheet. b-3. Prepare a statement of cash flows. c. Since Jana sold inventory for $36,000, she will be able to recover more than half of the $36,000 she invested in the stock. Do you. agree with this statement? Event 1. 2 3a & 3b. 4 5 Total Cash + ++ JANA'S FLOWERS Effect of Events on the Accounting Equation Assets Accounts Receivable + Inventory H # Stockholders' Equity Retained Earnings Common Stock +++++++ Accounts Titles for Retained Earnings JANA'S FLOWERS Income Statement For the Year Ended December 31, Year 1 Req A Req B1 Prepare a balance sheet. Assets Total assets Liabilities Stockholders' Equity Req B2 JANA'S FLOWERS Balance Sheet As of December 31, Year 1 Total stockholders' equity Total liabilities and stockholders' equity Req B3 Req C JANA'S FLOWERS Statement of Cash Flows For the Year Ending December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net cash flows from financing activities: Net change in cash Plus: Beginning cash balance Ending cash balance Do you agree with this statement? Por

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