1. Started the business when it acquired $50,000 cash from the issue of common stock. 2. Paid $22,200 cash to purchase inventory. 3. Sold inventory costing $12,400 for $27,400 cash. 4. Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet. Complete this question by entering your answers in the tabs below. Required B Inc Required B Bal Sheet Required A Stmt Record the events in the T-accounts provided.
1. Started the business when it acquired $50,000 cash from the issue of common stock. 2. Paid $22,200 cash to purchase inventory. 3. Sold inventory costing $12,400 for $27,400 cash. 4. Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet. Complete this question by entering your answers in the tabs below. Required B Inc Required B Bal Sheet Required A Stmt Record the events in the T-accounts provided.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required B Inc Required B Bal
Stmt
Required A
Sheet
Prepare an income statement.
HO DESIGNS
Income Statement
For the Year Ended December 31, Year 1
24
Required A
Required B Bal Sheet >
Transcribed Image Text:Ho Designs experienced the following events during Year 1, its first year of operation:
1. Started the business when it acquired $50,000 cash from the issue of common stock.
2. Paid $22,200 cash to purchase inventory.
3. Sold inventory costing $12,400 for $27,400 cash.
4. Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period.
Required
a. Record the events in the T-accounts provided.
b. Prepare an income statement and balance sheet.
ok
Complete this question by entering your answers in the tabs below.
Required B Inc Required B Bal
ences
Required A
Stmt
Sheet
Record the events in the T-accounts provided.
Cash
Common Stock
Beg. Bal.
Beg. Bal.
End. Bal.
End. Bal.
Merchandise Inventory
Sales Revenue
Beg. Bal.
Beg. Bal.
Bal
End. Bal.
End. Bal.
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