Return to question Junker's Stash started the Year 2 accounting period with the balances given in the financial statements model shown below. During Year 2, Junker's Stash experienced the following business events: 1. Paid cash to purchase $70,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Freight costs of $1,400 were paid in cash by the responsible party. 3a. Sold merchandise for $72,000 under terms 1/10, n/30. 3b. Recognized $41,900 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,100. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,250. 5. The merchandise in Event 3a was sold to customers FOB destination. Freight costs of $1,650 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $6,850 for selling and administrative expenses. 8. Sold the land for $9,100 cash. Required a. Record the above transactions in a financial statements model. The first event is recorded as an example. b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 22_ Prev 5 of 11 Next > Return to questic 8. Sold the land for $9,100 cash. Required a. Record the above transactions in a financial statements model. The first event is recorded as an example. b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required a Required D Record the above transactions in a financial statements model. The first event is recorded as an example. (In the Cash Flow column, use OA IC NC for Net change in cash and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outfl JUNKER'S STASH Financial Statements Model WAR Return to question JUNKER'S STASH Financial Statements Model Balance Sheet Assets Event No. Beg Cash Accounts Receivable Revenue! Gain Income si Expe Lo Inventory + Land Stockholders' Equity Common Retained Stock Earnings 70,000 36,000 + bal. 80,000 + + 15,000 + 11,000 1. + 4 (70,000) (1,400) X 70,000 + 2. + + + . 15 + 72,000 IS + 3b. 70 - + + (41,900) 72,000 S + 4a. 1 + + (2,100) + + 4b. + + + 1.250 + 5. + + + + 2 6. + + 6b. (699) (69,201) + 7. 69,201 (6,850) 9,100 + 8. + + + 6 (9,100) X + 44,350 X KAR 10 A al Return to question JUNKER'S STASH Financial Statements Model lance Sheet Stockholders' Equity Revenue! Gain Income Statement Expensel Loss Land Common Stock Net Income Retained Earnings Statement of Cash Flow ) + 11,000 70,000 36,000 ) + NA + + 15,000 x = 70,000 x = 72.000 1,400 MAS 10 A Return to question d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of net sales. Net sales AR