1. Acquired $65,000 cash from the issue of common stock 2. Purchased $82,000 of inventory on account 3. Received goods purchased in Event 2 FOB shipping point, freight cost of $930 paid in cash 4. Sold Inventory on account that cost $48,000 for $91,000. 5. Freight cost on the goods sold in Event 4 was $1,060. The goods were shipped FOB destination. Cash was paid for the fr 6. Customer in Event 4 returned $6,140 worth of goods that had a cost of $3,120. 7. Collected $74,620 cash from accounts receivable. 8. Paid $69,200 cash on accounts payable. 9. Paid $3,430 for advertising expense. 10. Pald $3,560 cash for insurance expense. Required a. 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 designate operating activity, Investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave t blank. The first event is recorded as an example, Complete this question by entering your answers in the tabs below. Required A Required B Which of these events affect period (selling and administrative) costs? Which result in product costa? (Not all cells require entry) Transaction 1 Cost 2 3 4 5 6 7 8 9 10 Complete this question by entering your answers in the tabs below. Required A Required B Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investmen In cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Enter any decreases to Not all cells require entry) Income Statement Event THE PET STORE Horizontal Statements Model for Year 1 Balance Sheet Liabilities - Stockholders' Equity Account Common Inventory Payable Stock Earnings 65 000 + + + Assets Accounts Receivable Cash Statement of Cash Flows Retained Revenue Net Income Expenses + 65.000 1 2 65,000 FA 3 40 5 ba 66 2 3 9 10 Bal