Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $63.000 cash from the issue of common stock. 2. Paid $21,500 cash to purchase inventory 3. Sold inventory costing $12,200 for $27100 cash. 4. Physically counted inventory, had inventory of $6,900 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. Required A Required B Inc Stmt Required B Bal Sheet Record the events in the T-accounts provided. Cash Common Stock Beg, Bal Beg. Bal. End. Bal. End. Bal. Merchandise Inventory Sales Revenue Beg. Bal. Beg. Bal. Bal End. Bal. End. Bal. Cost of Goods Sold Beg. Bal. End. Bal. Required A Required B Inc Stmt Required B Bal Sheet Prepare an income statement. HO DESIGNS Income Statement For the Year Ended December 31, Year 1 Required A Required B Inc Stmt Required B Bal Sheet Prepare a balance sheet. HO DESIGNS Balance Sheet December 31, Year 1 Assets Total assets Liabilities Stockholders' equity Total stockholders' equity Total liability and stockholders' equity