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 S16,000 cash. 2. Paid $11,000 cash to purchase inventory. 3. Sold merchandise that cost S8,000 for $17,000 on account. 4. Collected S14.000 cash from accounts receivable. 5. Paid$4,000 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. (Select "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 Assets Stockholders' Equity Accounts Titles for Event Retained Retained Earnings Accounts Inventory Common Stock Receivable 1. 16.000 16,000 (11,000) 17,000 17,000 3a 3b Total S 5,000 17,000 16,000 17,000