Sara Bayer started a small merchandising business in Year 1. The business experienced the following events during
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Sara Bayer started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Bayer uses the perpetual inventory system.
1. Acquired $50,000 cash from the issue of common stock.
2. Purchased inventory for $22,000 cash.
3. Sold inventory costing $18,000 for $28,000 cash.
Required
a. Record the events in a horizontal financial statements model like the one shown next.
b. Determine the amount of gross margin.
c. What is the amount of total assets at the end of the period?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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