Question

The following trial balance pertains to Feazell Hardware as of January 1, 2013.

Account Title	Debit	Credit
Cash	$ 28,000
Account Receivable	18,000
Merchandise Inventory	120,000
Accounts Payable		$ 10,000
Common Stock		140,000
Retained Earnings		16,000

The following events occurred in 2013. Assume that Feazell Hardware uses the periodic inventory system.

1. Purchased land for $16,000 cash
2. Purchased merchandise on account for $46,000, terms 2/10 n/30.
3. The merchandise purchased by Feazell was shipped FOB shipping point for $460 cash.
4. Returned $4,000 of defective merchandise purchased in Event 2
5. Sold merchandise for $4,000 cash
6. Sold merchandise on account for $100,000, terms 1/20 n/30.
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.
8. Paid $2,400 cash for selling expenses.
9. Collected $70,000 of accounts receivable within the discount period.
10. Collected $24,000 of accounts receivable but not within the discount period.
11. Paid $6,400 of other operating expenses.
12. Performed a physical count indicating that $60,000 of inventory was on hand at the end of the accounting period.

Requirements

1. Record these transactions in a general journal.
2. Post the transactions to ledger T-accounts.
3. Prepare a schedule of cost of goods sold, an income statement, a statement of changes in stockholders equity, a balance sheet and a statement of cash flows for 2013.