Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $64,000 cash from the issue of common stock. 2. Paid $21,500 cash to purchase inventory. 3. Sold inventory costing $11,600 for $26,700 cash. 4. Physically counted inventory, had inventory of $7,800 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. 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. 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 0 $ 0 Required A Required B Inc Required B Bal Stmt Sheet Prepare a balance sheet. HO DESIGNS Balance Sheet December 31, Year 1 Assets 0 Total assets Liabilities Stockholders' equity 0 Total stockholders' equity Total liability and stockholders' equity $ 0