Katie's Dress Supply (KDS), a garment wholesaler, experienced the following events in Year 1 , its first year of operations. KDS uses the perpetual inventory method. 1. KDS was started when it issued common stock for $60,000 cash. 2. KDS purchased land for cash for $8,000. 3. KDS purchased on account inventory with a list price of $54,000. Payment terms were 2/10,n/30. KDS records inventory transactions at the gross amount. 4. The transportation terms for the merchandise delivered in event No. 3 were FOB shipping point. KDS paid the transportation cost of $800 in cash. 5. An inspection revealed that merchandise with a purchase price of $4,000 from event No. 3 was defective. KDS returned this merchandise to its supplier for credit. 6. a. KDS recognizes the discount for $30,000 of the inventory purchased in event No. 3 . b. KDS paid this portion of accounts payable. 7. a. KDS sold inventory to various retail store customers on account. KDS offers customers payment terms of 1/15,n/30. The list price for the sales was $68,000. b. Recognized the cost of the inventory sold was $42,140. 8. a. Customers returned some goods KDS had sold in event No. 7. The goods had been sold for a list price of $4,000. The items are not defective and can be sold as is. b. These goods had a cost of $2,940. 9. KDS paid in cash transportation cost of $1,200 for goods delivered to customers FOB destination. 10. a. Receivables recorded at a gross price of $50,000 were paid within the 15 -day discount period. KDS recognized the sales discount. b. KDS collected cash from these customers. 11. KDS paid $9,600 in cash for other operating expenses. 12. KDS sold the land from transaction 2 for $12,000. 13. KDS paid dividends of $5,000 for the year. Required a. Download the Excel Workbook (Ch1-4 Review.xIsx) and record the events. - Enter the events listed above on the Transactions worksheet. Be sure to verify that the accounting equation remains in balance (A=L+SE) after each entry by examining the validation section of the worksheet. - Label each cash transaction (column P) as being operating, investing, or financing activity in column Q. - The financial statements are automatically generated on the Financial Statements worksheet