The following events were completed by Danas Imports in September, Year 1:

Sept.

1

Acquired $55,000 cash from the issue of common stock.

1

Purchased $35,500 of merchandise on account with terms 2/10, n/30.

5

Paid $1,050 cash for freight to obtain merchandise purchased on September 1.

8

Sold merchandise that cost $12,750 to customers for $18,500 on account, with terms 2/10, n/30.

8

Returned $1,150 of defective merchandise from the September 1 purchase to the supplier.

10

Paid cash for the balance due on the merchandise purchased on September 1.

20

Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period.

30

Paid $3,350 cash for selling expenses.

Required

Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example.

Prepare an income statement for the month ending September 30.

Prepare a statement of cash flows for the month ending September 30.

Complete this question by entering your answers in the tabs below. Required Required Required Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, LA for investment activity, FA for financing activity, or NC for net change in cath of the element is not affected by the event, leave the cell blanke. The first event is recorded as an example. Not every cell will require entry. Inter any decreases to account balances and cash outons with a minus sign) Show less DARA'S IMPORTS Effect of Transactions en Financial Statements Using Horizontal Statement Model Balance Sheet Income Statement Assets Les Stockholoure Equity Nel Accounts Common Reed Revenue Expenses Income Recable Ering M.000 Date Statement of Cash Flow Gash 55.000 Whentary - Accounts M 05.000 FA 5 DIB 10 20 30 To Required) Required A Required B Required C Prepare an income statement for the month ending September 30. DANA'S IMPORTS Income Statement For the Month Ended September 30, Year 1 Operating expenses >