Junkers Stash started the Year 2 accounting period with the balances given in the financial statements model shown below. During Year 2, Junkers Stash experienced the following business events: 1. Paid cash to purchase $72,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Freight costs of $1,440 were paid in cash by the responsible party. 3a. Sold merchandise for $75,000 under terms 1/10, n/30. 3b. Recognized $42,900 of cost of goods sold. 4a. Junkers Stash customers returned merchandise that was sold for $2,140. 4b. The merchandise returned in Event 4a had cost Junkers Stash $1,270. 5. The merchandise in Event 3a was sold to customers FOB destination. Freight costs of $1,670 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $6,900 for selling and administrative expenses. 8. Sold the land for $9,200 cash. Required a. Record the above transactions in a financial statements model. The first event is recorded as an example. b. Determine the amount of net sales. c. Prepare a multistep income statement.

Record the above transactions in a financial statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity NC for net change in cash and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) JUNKER'S STASH Financial Statements Model Balance Sheet Assets Revenuel Gain Income Statement Expensel = Net Income Statement of Cash Loss Flow Cash + Accounts Receivable Inventory + Land Event No. Beg. bal. 1 Stockholders' Equity Common Retained Stock Earnings 72,000 + 36,600 82,000 + + 15,200 + 11,400 = - = NA + + + + 2 + + + - + + 3a. 3b. 4a. + + + 4b. + + 5. . 6b. + + + + + = 7. + + + + 8. End, bal + Determine the amount of net sales. (Round your answer to 1 decimal place.) Net sales Prepare a multistep income statement. B D 1 A JUNKER'S STASH Income Statement For the Year Ended December 31, Year 2 N 3 4 5 6 7 Operating expenses 00 9 10 11 Total operating expenses 12 13 Non-operating items 14 15