1. Utilize the following events to:

A. Record the general journal entries for each event assuming a Perpetual System.

B. Set up T-accounts: Cash (assume a $40,000 beginning balance), Inventory, Purchases, Cost of Goods Sold and Sales Revenue. Then post from your general journal entries in A. above to these accounts.

C. Prepare a short Income Statement and Balance Sheet.

Events:

a. Tom purchases 50 big screen sets for resale to his customers at a cost of $600 each, paying cash for the sets.

b. Tom sells 35 of the sets for $800 each to customers for cash (make sure you record both the revenue and expense).

c. Tom counts his inventory, revealing a total of 14 sets in stock.