1. Custom Auto Parts started this year with the following balances:

Cash: $60,000

Merchandise Inventory: $8,000

Land: $12,000

Accounts Payable: $0

Common Stock: $50,000

Retained Earnings: $30,000

During the year they had the following transactions:

1. Purchase $60,000 of merchandise inventory on account, terms 2/10,n/30.
2. The goods delivered in Event 1 were delivered FOB shipping point. Freight costs of $1,500 were paid in cash by the responsible party
3. Returned $3,000 of goods purchased in Event 1
4. Paid the balance due on the goods purchased in Event 1 and recorded the cash discount.
5. Recognized $59,000 of cash revenue from the sale of merchandise and recognized $45,000 of cost of goods sold from such sale.
6. The goods sold in Event 5 were delivered to the customers FOB destination. Freight costs of $1,400 were paid in cash by the responsible party.
7. Paid $9,000 in cash for selling and administrative expenses.
8. Sold the land for $14,500 in cash.

Using Excel, assuming a perpetual inventory system, record each transaction in the horizontal statements model.

After completing the recording of the transactions, prepare a multistep income statement. Include common size percentages on the income statement.