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Expert Computers was started in 2018. The company experienced the following accounting events during its first year of operation: 1. Started business when it acquired

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Expert Computers was started in 2018. The company experienced the following accounting events during its first year of operation: 1. Started business when it acquired $40,000 cash from the issue of common stock. 2. Purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30 3. Paid off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $28,000. Credit terms were 1/20, n/30. The merchandise had cost Expert Computers $16,000 5. Collected cash from the account receivable within the discount period. 6. Paid $2,100 cash for operating expenses. 7. Paid the balance due on acccounts payable. The payment was not made within the discount period. Required a. Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the account is not affected by the event, leave the cell blank. The first event is recorded as an example. b. What is the amount of gross margin for the period? What is the net income for the period? Complete this question by entering your answers in the tabs below. Required A Required 8 Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for fir account is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account bal EXPERT COMPUTERS Horizontal Statements Model for 2018 Assets Stockholders' Equity Income Statement Liabilities Statement of Cash Flows Event Retained Revenue Earnings Accounts Payable Accounts Receivabile Common Stock Net Cash Inventory Expenses Income Prev 2 of 4 Next

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