Scott Company is a merchandising business that was started in 2012. Scott uses the perpetual inventory system. It experienced the following events during 2012. 1. Acquired $25,000 cash by issuing common stock 2. Purchased inventory on account that cost $14,000, terms 2/10, n/30 3. Sold inventory that had cost $8,400 for $15,000 cash 4. Paid for the merchandise referred to in event 2, within the discount period Required: 1) Record the events in the financial statements model below; include column totals. 2) Prepare an income statement for 2012. 3) What is the amount of total assets at the end of 2012?

Assets

=

Liab.

+

Stockholders Equity

Rev.

-

Exp.

=

Net. Inc.

Cash Flow

Cash

+

Accts. Rec.

+

Inven.

=

Accts. Pay.

+

Com. Stk.

+

Ret. Earn.

1

2

3

4