Ho Designs experienced the following events during Year 1, its first year of operation. 1. Started the business when it acquired $59,000 cash from the issue of common stock 2. Paid $22,800 cash to purchase inventory. 3. Sold inventory costing $12,200 for $27, 100 cash. 4. Physically counted inventory; had inventory of $7,100 on hand at the end of the accounting period. Required a. Record the events in T-accounts provided b. Prepare an income statement and balance sheet
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Ho Designs experienced the following events during Year 1, its first year of operation.
1. Started the business when it acquired $59,000 cash from the issue of common stock
2. Paid $22,800 cash to purchase inventory.
3. Sold inventory costing $12,200 for $27, 100 cash.
4. Physically counted inventory; had inventory of $7,100 on hand at the end of the accounting period.
Required
a. Record the events in T-accounts provided
b. Prepare an income statement and
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