PROBLEM 5 Effect of purchase returns and allowances and purchase discounts on the financial statements: perpetual system (net method) (20 Points)

The following events were completed by Chris Toy Shop in September 2015:

Information is attached in attachments

Required:

a.Record each event in an accounting equation.

b.Do income statement for the month ending September 30.

c.Do balance sheet for the month ending September 30.

d.Do statement of cash flows for the month ending September 30.

Sept. l Acquired $30,000 cash from the issue of common stock. I Purchased 522,000 ofmerehandise on account 1with terms 2! 10, ni'30. 5 Paid $500 cash for freight to obtain merchandise: purchased on September 1. 3 Sold merchandise that cost $5.000 to customs for $9,500 on account, with terms I! [0, 1160. 3 Returned $300 ci'dct'eciire merchandise From the September I purchase to the supplier. 0 Paid cash for onehalf of the baianee due on the merchandise piuehase-d on September I. 0 Received cash from customers of September 3 sale in settlement of the account balances, but not within the discount period. 30 Paid the balance due on the merchandise purchased on September I. 30 Psid H.950 cash for selling expenses. | 2