The following trial balance pertains to Reeves Hardware as of January 1, 2011:

The following events occurred in 2011. Assume that Reeves Hardware uses the periodic inventory system.
1. Purchased land for \(\$ 8,000\) cash.
2. Purchased merchandise on account for \(\$ 23,000\), terms \(2 / 10 \mathrm{n} / 30\).
3. The merchandise purchased by Reeves was shipped FOB shipping point for \(\$ 230\) cash.
4. Returned \(\$ 2,000\) of defective merchandise purchased in Event 2.
5. Sold merchandise for \(\$ 27,000\) cash.
6. Sold merchandise on account for \(\$ 50,000\), terms \(1 / 20 \mathrm{n} / 30\).
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2 .
8. Paid \(\$ 1,200\) cash for selling expenses.
9. Collected \(\$ 35,000\) of accounts receivable within the discount period.
10. Collected \(\$ 12,000\) of accounts receivable but not within the discount period.
11. Paid \(\$ 3,200\) of other operating expenses.
12. Performed a physical count indicating that \(\$ 30,000\) of inventory was on hand at the end of the accounting period.

Required

a. Record these transactions in a general journal.

b. Post the transactions to ledger T-accounts.

c. Prepare a schedule of cost of goods sold, an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for 2011.

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Account Title Debit Credit Cash $14,000 Accounts receivable 9,000 Merchandise inventory 60,000 Accounts payable $ 5,000 Common stock 70,000 Retained earnings 8,000 Total $83,000 $83,000