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: 1. Started the business when it acquired $52,000 cash from the issue of common stock. 2. Paid $22,300 cash to purchase inventory. 3. Sold inventory costing $11,800 for $28,200 cash. 4. Physically counted inventory; had inventory of $7,600 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 Record the events in the T-accounts provided. Beg. Bal. Req B Income Req B Balance Statement Sheet End. Bal. Cash Inventory Beg. Bal. End. Bal. Common Stock Sales Revenue *******

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: 1. Started the business when it acquired $52,000 cash from the issue of common stock. 2. Paid $22,300 cash to purchase inventory. 3. Sold inventory costing $11,800 for $28,200 cash. 4. Physically counted inventory; had inventory of $7,600 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. Record the events in the T-accounts provided. Record the events in the T-accounts provided. Complete this question by entering your answers in the tabs below. Prepare an income statement. Complete this question by entering your answers in the tabs below. Prepare a balance sheet