ok t inces The following listing of accounts pertains to Benji's Grocery as of January 1, Year 2: Account Title: Cash Accounts receivable Merchandise inventory Accounts payable Common stock Retained earnings Beginning Balances $ 29,000 4,600 56,000 4,600 49,000 36,000 The following events occurred in Year 2. Assume that Benji's uses the periodic inventory method. 1. Purchased land for $9,600 cash. 2. Purchased merchandise on account for $102,000, terms 1/10, n/45. 3. Paid freight of $1,300 cash on merchandise purchased FOB shipping point. 4. Returned $4,200 of defective merchandise purchased in Event 2. 5. Sold merchandise for $92,000 cash. 6. Sold merchandise on account for $99,000, terms 2/10, n/30. 7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2. 8. Paid $12,200 cash for selling expenses. 9. Collected $56,000 of the accounts receivable from Event 6 within the discount period. 10. Collected $43,000 of the accounts receivable but not within the discount period. 11. Paid $7,000 of other operating expenses. 12. A physical count indicated that $48,200 of inventory was on hand at the end of the accounting period. Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify < Prev 7 of 7 Next the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare a schedule of cost of goods sold and an income statement Complete this question by entering your answers in the tabs below. Req A Req B COGS Req Income Schedule Statement Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record ti column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. BENJI'S GROCERY Horizontal Statements Model Balance Sheet Liabilities Stockholders' Equity Accounts Land Payable Common Stock Retained Earnings 4,000+ 49,000 36,000 Event Assets Cash Accounts Receivable Inventory Balance 29,000+ 4,600 56,000+ 1 2 3. 4 . 6 + Income Statement Stateme Revenue Expenses Net Income Req A Req B COGS Req B Income Statement Schedule Prepare a schedule of cost of goods sold. BENJI'S GROCERY Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2 Cost of goods available for sale Cost of goods sold < Req A Req B Income Statement Req A Req B COGS Req B Income Schedule Statement Prepare an income statement. BENJI'S GROCERY Income Statement Revenue For the Year Ended December 31, Year 2 Net sales Operating expenses Total operating expenses