The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $70,000 cash from the issue of common stock. 2. Purchased $61,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. 4. Sold inventory on account that cost $51,000 for $97,000. 5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320. 7. Collected $79,540 cash from accounts receivable. 8. Paid $56,200 cash on accounts payable. 9. Paid $3,020 cash for advertising expense. 0. Paid $4,050 cash for insurance 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 example. minus sign. Not all cells require entry.) Show less A
Other questions asked by students
Pizzeria Duo Express sells two type of pizzas; regular and deluxe. The company sells each regular...
Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following...
Mariah needs to randomly select one of three groups of students to make their presentation...
Find the angle between the vectors (-9, -8) and (-8, 7). Carry your intermediate computations...
All of the following are methods that aid management in analyzing the expected results of...
The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost...
Diego Company manufactures one product that is sold for $71 per unit in two geographic...
The annual interest rate on a credit card is 16.99%. If a payment of $100...