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Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation:
Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5
Ho Designs experienced the following events during Year 1, its first year of operation:
- Started the business when it acquired $52,000 cash from the issue of common stock.
- Paid $21,400 cash to purchase inventory.
- Sold inventory costing $12,200 for $27,500 cash.
- Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period.
Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.
Complete this question by entering your answers in the tabs below.
- Req A
- Req B Income Statement
- Req B Balance Sheet
Prepare an income statement.
HO DESIGNS
Income Statement
For the Year Ended December 31, Year 1
0
$
0
- Req A
- Req B Balance Sheet
Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5
Ho Designs experienced the following events during Year 1, its first year of operation:
- Started the business when it acquired $52,000 cash from the issue of common stock.
- Paid $21,400 cash to purchase inventory.
- Sold inventory costing $12,200 for $27,500 cash.
- Physically counted inventory; had inventory of $7,700 on hand at the end of the accounting period.
Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.
Complete this question by entering your answers in the tabs below.
- Req A
- Req B Income Statement
- Req B Balance Sheet
Prepare an income statement.
|
|
|
|
|
|
HO DESIGNS |
|
Income Statement |
|
For the Year Ended December 31, Year 1 |
|
|
|
|
|
| 0 |
|
|
| $ 0 |
- Req A
- Req B Balance Sheet
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