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 $21,100 cash to purchase inventory. 3. Sold inventory costing $11,600 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. Required A Required B Inc Required B Bal Stmt 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. 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 $21,100 cash to purchase inventory. 3. Sold inventory costing $11,600 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. Required A Required B Inc Required B Bal Stmt Sheet Prepare an income statement. HO DESIGNS Income Statement For the Year Ended December 31, Year 1 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 $21,100 cash to purchase inventory. 3. Sold inventory costing $11,600 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. Required A Required B Inc Required B Bal Stmt 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