3. Gains & Losses for Two Accounting Cycles (LO4.1)

At the beginning of Year 2, the Bradley Company had the following balances in its accounts:

Cash	$53,600
Inventory	18,000
Common Stock	65,000
Retained Earnings	6,600

During Year 2, the company experienced the following events:

1. Purchased inventory that cost $4,400 on account from Bivins Company.
2. Purchased two $50,000 tracts of land for a total price of $100,000. 30% was paid in cash, the balance was borrowed from the bank.
3. Sold inventory that cost $6,000 for $11,000 on account.
4. Purchased a delivery van for $15,000 cash.
5. Paid half the amount due to Bivins Company.
6. Paid 10% of the outstanding balance on the land note.
7. Sold one tract of land for $70,000 cash.