1.35 6 points Problem 3-28A (Algo) Comprehensive cycle problem: Periodic system (Appendix) LO 3-9 The following listing of accounts pertains to Benji's Grocery as of January 1, Year 2: Beginning Account Title. Balances Cash $25,500 Accounts receivable 3,900 Merchandise inventory 49,000 Accounts payable 3,900 eBook Common stock 42,000 Retained earnings 32,500 Print References The following events occurred in Year 2. Assume that Benji's uses the periodic inventory method. 1. Purchased land for $8,900 cash. 2. Purchased merchandise on account for $95,000, terms 3/10, n/45. 3. Paid freight of $950 cash on merchandise purchased FOB shipping point. 4. Returned $3,500 of defective merchandise purchased in Event 2. 5. Sold merchandise for $85,000 cash. 6. Sold merchandise on account for $88,500, terms 1/10, n/30. 7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2. 8. Paid $11,500 cash for selling expenses. 9. Collected $49,000 of the accounts receivable from Event 6 within the discount period. 0. Collected $39,500 of the accounts receivable but not within the discount period. 11. Paid $6,300 of other operating expenses. 2. A physical count indicated that $47,500 of inventory was on hand at the end of the accounting period. Required a. Record the preceding transactions in a horizontal statements model. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the account is not affected by the event, leave cell blank. The beginning balances have been recorded as an example. b. Prepare a schedule of cost of goods sold and an income statement. 135 points event, leave the cell blank. The beginning balances have been recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a mine statements model. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC F BENJIS GROCERY Horizontal Statements Model Balance Sheet Income Statement Event Assets Liabilities Stockholders' Equity Statement of Cash Cash Accounts Receivable Ball 25.500 3,000+ Print Merchandise Inventory 49,000+ Land Accounts Payable 3,900 Common Stock 42.000 Retained Earnings Revenue Expenses Net Income Flows 32.500 1 (8.900) 8.900 2 References 3: (900) 4 95.000+ 950 (3.5000+ 95.000 3,500) 5 85,000- 6 88,500 . 85,000 85.000 88,500 88.500- (8,900) A (950) OA 85.000 88.500 85,000 OA 7a 7b B (11,500) (11.500) 11.500- (11,500) (11.500) OA 9 90 . H-I 10 30.500 30.500) 30.5000A 11 16.300 6.300) 6.300 ,500) (8.300) A 12 T $ 122.350 $ 52,000 $ 141,450 6.900 $ 95,400 $ 42,000+ $ 188.200 $173.500- $17,000 $55,700 $ 00.650 C)