Exercise 3-1 Determining the cost of financing Inventory LO 3-1 On January 1, 2014, Laura started a small flower merchandising business that she named Laura's Flowers The company experienced the following events during the first year of operation. 1. Started the business by issuing common stock for $39,000 cash 2 Paid $26,000 cash to purchase inventory 3 Sold merchandise that cost $18,000 for $38,000 on account. 4. Collected $34,000 cash from accounts receivable 5 Paid $8,800 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. (Seledt NA" if there is no effect on the "Accounts Titles for Retained Earnings". Enter any decreases to account balances with a minus sign.) LAURA'S FLOWERS Effect of Events on the Accounting Equation Stockholders' Equity Accounts Titles for Common Retained Retained Earnings Assets Accounts Inventory 2. 3a. 3b Total b-1.Prepare an income statement Type here to search