Ho Designs experienced the following events during Year 1, its first year of operation:

1. Started the business when it acquired $55,000 cash from the issue of common stock.
2. Paid $21,600 cash to purchase inventory.
3. Sold inventory costing $12,400 for $28,100 cash.
4. Physically counted inventory; had inventory of $7,100 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.

(ANSWER ALL PARTS PHOTO SHOWS FIRST PART)

Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $55,000 cash from the issue of common stock. 2. Paid $21,600 cash to purchase inventory. 3. Sold inventory costing $12,400 for $28,100 cash. 4. Physically counted inventory; had inventory of $7,100 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. Record the events in the T-accounts provided