David’s Paint Supply experienced the following events

Recording inventory transactions in a financial statements model

David’s Paint Supply experienced the following events during 2012, its first year of operation:

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

2. Purchased inventory for $24,000 cash.

3. Sold inventory costing $13,000 for $22,000 cash.

4. Paid $1,600 for advertising expense.

Required

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

Assets = Equity Rev. - Exp. = Net Inc. Cash Flow
Cash + Inv. = Com. Stk. + Ret. Earn.

 

Here’s the SOLUTION

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