Exercise 3-1A (Static) 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 $30,000 cash. 2. Paid $19,000 cash to purchase inventory. 3. Sold merchandise that cost $10,000 for $21,000 on account. 4. Collected $16,000 cash from accounts receivable. 5. Paid $3,750 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 $21,000, she will be able to recover more than half of the $30,000 she invested in the stock. Do you agree with this statement? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req 83 Reg C Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) Prev Navt work i agree with this statement? Saved Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C 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. (If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require input. Enter any decreases to account balances with a minus sign.) JANA'S FLOWERS Effect of Events on the Accounting Equation Assets Stockholders' Equity Accounts Titles for Event Accounts Cash Receivable Inventory Common Stock Retained Earnings Retained Earnings 1. 2. 3a. 3b. 4. 5. Total $ 0+ $ 0+ $ 0 $ $ 0 Reg. A Req B1 > Prev 1 of 5 Next > agree with this statement? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Prepare an income statement. JANA'S FLOWERS Income Statement For the Year Ended December 31, Year 1 < Req A Req B2> Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Prepare a balance sheet. Assets JANA'S FLOWERS Balance Sheet As of December 31, Year 1 Total assets Liabilities Stockholders' Equity 10 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 Prepare a statement of cash flows. (Cash outflows should be Indicated with a minus sign.) JANA'S FLOWERS Statement of Cash Flows For the Year Ending December 31, Year 1 Cash flows from operating activities: Inflow from customers Outflow for inventory Outflow for expenses Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Cash inflow from stock issue Net cash flows from financing activities: Net change in cash Plus: Beginning cash balance Ending cash balance C $ 16,000 (19,000) (3,750) 30,000 $ (6,750) 30,000 23,250 $ 23,250 a. Ciganke euyer accounts under an accounting equation du recuru the events in ure accounts. I une last Cuium O BIE 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 $21,000, she will be able to recover more than half of the $30,000 she invested in the stoc agree with this statement? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Since Jana sold Inventory for $21,000, she will be able to recover more than half of the $30,000 she invested in the stock. Do you agree with this statement? Do you agree with this statement? > Prev 1 of 5 Next > TO WAS