I need help with these questions so that i can practice how to solve on my own.

QUESTION 3 (10 MARKS)

A.What are the elements of the Financial statements and indicate which Financial statement each element belongs to

B.List and Explain Three assumptions and Four Principles in accounting

C.Merchandizers are those in the business of buying and re-selling of Merchandize. Below is an example of the activities of transactions that take place in a Merchandizing business and answer the questions that follow

During June of the current year, the following transactions took place between Distance Hardware, a retailer of home and building supplies, and their supplier, Full-Time Materials.

June1.

Full-Time Materials sold K15,000 worth of merchandise on account to Distance Hardware on terms of 3/10, n/45, FOB shipping point Full-Time Materials prepaid shipping charges of K220 and included this amount in the invoice total. These goods had a cost to Full-Time Materials of K7,500.

4

When Distance Hardware checked the items received from the purchase of June l, they realized that they had received too many electrical inserts. They returned KK3,500 of the merchandise to Full-Time Materials. Full-Time Materials restocked this inventory, which had an original cost of K1,875.

10

Distance Hardware paid the amount owed to Full-Time Materials for the June 1 purchase, less the return and the discount.

25

Distance Hardware sold K3,200 worth of merchandise to Sarah Craft for cash. This merchandise had a cost to Distance Hardware of K1,700.

Requirements

1.What kinds of discounts exist in a merchandizing business and what purpose do they serve in a business?

2.Journalize these transactions for Distance Hardware.