Chapter 3, Problem 5E

Exercise 3-5 Recording inventory transactions in a financial statements model

Milo Clothing experienced the following events during 2018, its first year of operation:

1. Acquired $30,000 cash from the issue of common stock.

2. Purchased inventory for $15,000 cash.

3. Sold inventory costing $9,000 for $20,000 cash.

4. Paid $1,500 for advertising expense.

Required

Record the events in a statements model like the one shown here.