Elenas Earrings Inc (EE)experienced the following events in 2020 and uses the perpetual inventory method. For each event, show:

For each event, show if and how cash, the balance sheet (A=L+E) and the income statement (R-E=NI) are affected, using specific dollar amounts and accounts. (present in example format below)

(show in equation form with clearly labeled and properly labeled) Be sure the equation balances.

EE issued $70,000 of common stock.

EE purchased merchandise inventory on account for $110,000

The freight terms for the inventory merchandise in #1 were FOB shipping point. EE paid the freight cost of $300 in cash.

An inspection revealed that some of the inventory purchased in #1 was defective, and that had a cost of $8,000. EE returned this merchandise to the supplier.

EE sold 120 Earrings at a sales price of $250 each ON ACCOUNT to customers. EE had purchased the merchandise inventory sold for $12,000 (#1). HINT: it is now that the merchandise inventory becomes an expense.

EE customers returned some merchandise EE had sold them in #5. The merchandise had been sold for the $4,000 and had been purchased by EE for $1,500.

EE paid (in cash) freight cost of $3,000 for goods delivered to customers in #5, FOB destination.