Event 1: TEST acquired $20,000 cash by issuing common stock.

Event 2: TEST paid $5,000 cash to purchase land for a place to locate a future store.

Event 3: TEST purchased on account merchandise inventory with a list price of $23,000.

Event 4: TEST returned some of the inventory purchased in Event 3. The list price of the returned merchandise was $500.

Event 5a: TEST recognized $22,000 revenue on the sale on account of merchandise that cost $16,000.

Event 5b: TEST recognized $16,000 of cost of goods sold.

Event 6: The shipping terms for the inventory purchased in Event 3 were FOB shipping point. TEST paid the freight company $950 cash for delivering the merchandise.

Event 7: TEST received cash discount on goods in Event 3. The credit terms were 2/10, n/30.

Event 8: TEST paid the $22,050 balance due on the account payable.

Event 9: TEST sold the land that had cost $5,000 for $7,000 cash.

Event 10a: A customer returned inventory (bought on account) with a price of $3,000 and merchandise had cost Test $1,500.

Event 10b: The cost of the goods ($1,500) is returned to the inventory account.

Event 11: TEST received $2,500 cash in advance from Pay company for services that will be performed in the following year.

Event 12: TEST took a physical count of its inventory and found $8,000 of inventory on hand.