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The Pet Store experienced the following events for the Year 1 accounting period: ...

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Accounting

The Pet Store experienced the following events for the Year 1 accounting period:
Acquired $60,000 cash from the issue of common stock.
Purchased $65,000 of inventory on account.
Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
Sold inventory on account that cost $38,000 for $71,000.
Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost.
Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150.
Collected $58,300 cash from accounts receivable.
Paid $59,200 cash on accounts payable.
Paid $2,600 for advertising expense.
Paid $3,100 cash for insurarice expense.
Required
a. Which of these events affect period (selling and administrative) costs? Which result in product costs?
b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an exanyple.N
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