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.
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.|