Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired $18,500 cash from the issue of common stock. 2. Purchased inventory for $5,000 cash. 3. Sold inventory costing $3,000 for $5,100 cash. 4. Paid $700 for advertising expense. Required a. Record the general journal entries for the preceding transactions. b. Post each of the entries to T-accounts. c. Prepare a trial balance to prove the equality of debits and credits. Complete this question by entering your answers in the tabs below. Required A Required B Required C Post each of the entries to T-accounts. Post each of the entries to T-accounts. Merchandise Inventory Cash Beg. Bal. Beg. Bal. End. Bal. End. Bal. Common Stock Sales Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Cost of Goods Sold Advertising Expense Beg. Bal Beg. Bal. End. Bal. End. Bal. Prepare a trial balance to prove the equality of debits and credits MILO CLOTHING Trial Balance December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ 0 On April 6, Year 1, Home Furnishings purchased $45,000 of merchandise from Una imports, terms 1/10 n/45. On April 8. Home returned $9,500 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home must pay Una Imports on April 15? b. Record the events in a horizontal statements model like the following one. c. How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? d. Record the payment in Requirement in a horizontal statements model like the one above. Complete this question by entering your answers in the tabs below. Required a Required B Required C Required D What is the amount that Home must pay Una Imports on April 15? Net amount due Required A Required B Required Required D Record the events in a horizontal statements model like the following one. (In the Cash Flow column, use OA to designate operating activity, IA 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.) HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Assets Net Liabilities Stkholders' Equity Revenue - Expense Statement of Cash Income Flow Events Cash Accounts Inventory Common Retained Payable Stock Earnings 1. Pur, inv. 2. Ret, inv. 3. Disc ++ ++ 4.Pd. AP Required A Required B Required Required D How much must Home pay for the merchandise purchased if the payment is not made until April 20, Year 1? Payment Record the payment in Requirement c in a horizontal statements model like the one above. (In the Cash Flow column, use OA to FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances and HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet Income Statement Assets Liabilities Stkholders' Equity Revenue Expense Net Incomo Statement of Cash Flow Events Cash + Inventory Accounts Payable Common Stock Retained Earnings 3. Pd. AP +
