Exercise 3-1A (Algo) Determining the cost of financing inventory LO 3-1\ On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation:\ Started the business by issuing common stock for

$13,000

cash.\ Paid

$9,000

cash to purchase inventory.\ Sold merchandise that cost

$6,000

for

$13,000

on account.\ Collected

$10,000

cash from accounts receivable.\ Paid

$3,000

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.\ b-1. Prepare an income statement.\ b-2. Prepare a balance sheet.\ b-3. Prepare a statement of cash flows.\ c. Since Jana sold inventory for

$13,000

, she will be able to recover more than ralf of the

$13,000

she invested in the stock. Do you agree with this statement?

Exercise 3-1A (Algo) Determining the cost of financing inventory LO 3-1 On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation: 1. Started the business by issuing common stock for $13,000 cash. 2. Paid $9,000 cash to purchase inventory. 3. Sold merchandise that cost $6,000 for $13,000 on account. 4. Collected $10,000 cash from accounts receivable. 5. Paid $3,000 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. b-1. Prepare an income statement. b-2. Prepare a balance sheet. b-3. Prepare a statement of cash flows. c. Since Jana sold inventory for $13,000, she will be able to recover more than flalf of the $13,000 she invested in the stock. Do you agree with this statement