1. Started business when it acquired $82,000 cash from the issue of common stock.

1. Started business when it acquired $82,000 cash from the issue of common stock.
2. Purchased merchandise with a list price of $66,000 on account, terms 2/10, n/30.
3. Paid off one-half of the accounts payable balance within the discount period.
4. Sold merchandise on account for $53,600. Credit terms were 1/20, n/30. The merchandise had cost Expert Computers $32,200.
5. Collected cash from the account receivable within the discount period.
6. Paid $9,800 cash for operating expenses.
7. Paid the balance due on accounts payable. The payment was not made within the discount period.

Required

1. Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the account is not affected by the event, leave the cell blank. The first event is recorded as an example.
2. What is the amount of gross margin for the period? What is the net income for the period?

Required A Required B Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity change in cash. If the account is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Ent cash outflows with a minus sign.) EXPERT COMPUTERS Assets Event Horizontal Statements Model for 2018 Liabilities + Stockholders' Equity Income Statement Accounts Common Retained Net Revenue Payable Stock Expenses Earnings Income 82,000 + Statement of Cash Flows Accounts Receivable Cash + + Inventory = + + 1. 82,000 + + + 82,000 FA 2. + + + + 3. + + + + 4a. + + + + 4b. + + + + 5. + + + + 6. + + + + 7. + + + + End. Bal 82,000 + 0+ 0= 0 + 82,000 + 0 0 82,000