Expert Computers was started in Year 1. 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 accounts 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 B Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for inve event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances an EXPERT COMPUTERS Horizontal Statements Model for Year 1 Liabilities Stockholders' Equity Assets Help Save & Exit Check m Complete this question by entering your answers in the tabs below. Required A Required 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 du event, leave the cell bank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minussion) EXPERT COMPUTERS Horizontal Statements Model for Year 1 Liabilities Stockholders' Equity Accounts Common Retained Payable - Stock Earnings 40 000 . Income Statement Assets Accounts Receivable Event Cash Inventory Revenue Expenses Cash Flow 1 40.000 + + . 40 000 FA 2 + 32000 32.000 + 3 + . . + 5 . + 8 End Bal 40 000 0 32.000 32 000 40 000 40 000 Required) to search 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 accounts 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 B What is the amount of gross margin for the period? What is the net income for the period? Gross margin Net income
