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.

Merchandise Cash Inventory 60000 8000 Land Event Bal Cash Flow Accounts Payable Common Stock Retained Earnings Dividends 50000 30000 12000 60000 8000 12000 0 50000 30000 Assets 80000 Liabilities+SE 80000 Capital Gain on Sale of Land Selling and Cost of Goods Sold Adminstrative Transportation- Out Event Revenue Net Income 00 ou wN Custom Auto Parts Income Statement For the Year Ended Dec 31