3 Exercise 4-11A Effect of Inventory losses: Perpetual system LO 4-5 1.42 points Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $56.000 cash from the issue of common stock. 2. Paid $22,200 cash to purchase inventory. 3. Sold Inventory costing $11.900 for $28.400 cash. 4. Physically counted Inventory: had Inventory of $7.000 on hand at the end of the accounting period. eBook Print Required a. Record the events in the T-accounts provided. b. Prepare an Income statement and balance sheet. References Complete this question by entering your answers in the tabs below. Required A Required B In Required B Bal Stml Sheet Prepare an income statement. HO DESIGNS Income Statement For the Year Ended December 31, Year 1