1. Acquired $50,000 cash from the issue of common stock. 2. Purchased $71,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,280 paid in cash. 4. Sold inventory on account that cost $32,500 for $60,000. 5. Freight cost on the goods sold in Event 4 was $1,140. The goods were shipped FOB destination. Ca 6. Customer in Event 4 returned $5,700 worth of goods that had a cost of $2,900. 7. Collected $49,200 cash from accounts receivable. 8. Paid $53,700 cash on accounts payable. 9. Paid $3,470 cash for advertising expense. 10. Paid $3,840 cash for insurance expense. Required Which of these events affect period (selling and administrative) costs? Which result in product costs? b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to desig investment activity, FA for financing activity, or NC for net change in cash. If the element is not affecte blank. The first event is recorded as an example. Complete this question by ent Which of these events affect perioc entry.) THE PET STORE Horizontal Statements Model for Year 1 Prev 1 of 2 Next >