Just answer b. b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OAto designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicatethe element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)tsTHE PET STOREHorizontal Statements Model for Year 1eBookBalance SheetIncome StatementAssetsStockholders' Equity- Expense= Net IncomeStatement of CashFlowLiabilitiesRevenueAccountsReceivableAccountsCommonStockRetainedEventsCashInventory%3D+HintPayableEarnings1. Stock55.000 +55.000 +55,000FA+2. Pur inv.+%3D+%3DPrint3. Freight+%3D++%3D4a. Sold inv.++%3D4b. Cost++%3D+erences5. Pd. frt.+6a. Ret. sale+6b. Ret. inv+++%3D7. Coll. AR++8. Pd. AP+9. Pd. exp.++%3D10 Pd. exp.+End Bal.55,000+0 +0 =|55,000 +0 +0 =55,000 The Pet Store experienced the following events for the Year 1 accounting period:1. Acquired $55,000 cash from the issue of common stock.2. Purchased $78,000 of inventory on account.3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,400 paid in cash.4. Sold inventory on account that cost $44,000 for $83,000.5. Freight cost on the goods sold in Event 4 was $1,200. The goods were shipped FOB destination. Cash was paid for the freight cost.6. Customer in Event 4 returned $5,360 worth of goods that had a cost of $2,730.7. Collected $68,060 cash from accounts receivable.8. Paid $64,000 cash on accounts payable.9. Paid $3,360 for advertising expense.10. Paid $3,570 cash for insurance expense.Requireda. Which of these events affect period (selling and admNA.istrative) costs? Which result in product costs? If neither, label the transactionTransactionCost1.NA

Answered: Image /qna-images/answer/e74af2d3-a608-4003-a922-5f4c58f729bf.jpg

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)