The Pet Store experienced the following events for the 2016 accounting period 1 Acquired $60,000 cash from the issue of common stock 2 Purchased $65,000 of inventory on account 3 Received goods purchased in Event 2 FOB shipping point freight cost of $900 paid in cash 4 Sold inventory on account that cost $38,000 for $71,000 5 Freight cost on the goods sold in Event 4 was $620 The goods were shipped FOB destination Cash was paid for the freight cost 6 Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150 7 Collected $58,300 cash from accounts receivable 8 Paid $59,200 cash on accounts payable 9 Paid $2,600 for advertising expense 10 Paid $3,100 cash for insurance expense THE PET STORE Horizontal Statements Model for 2016 Balance Sheet Income Statement Statement of Cash Flow ExpenseNet Income Liabilities Accounts Payable Assets Stockholders' Equity Revenue Accounts Inventory Receivable Retained Earnings Common Events 1 Stock 2 Pur inv 3 Freight 4a Sold inv Stock 60,000 60,000 FA OA OA 60,000 4b Cost 5 Pd frt 6a Ret sale 6b Ret inv 7 Coll, AR 8 Pd AP 9 Pd exp 10 Pd exp Total 60,000 60,000 60 000

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Posted on Sep 15, 2024

The Pet Store experienced the following events for the 2016 accounting period: 1. Acquired $60,000 cash from the issue of common stock. 2. Purchased $65,000

The Pet Store experienced the following events for the 2016 accounting period:

1.	Acquired $60,000 cash from the issue of common stock.
2.	Purchased $65,000 of inventory on account.
3.	Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
4.	Sold inventory on account that cost $38,000 for $71,000.
5.	Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost.
6.	Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150.
7.	Collected $58,300 cash from accounts receivable.
8.	Paid $59,200 cash on accounts payable.
9.	Paid $2,600 for advertising expense.
10.	Paid $3,100 cash for insurance expense.

THE PET STORE Horizontal Statements Model for 2016 Balance Sheet Income Statement Statement of Cash Flow ExpenseNet Income Liabilities Accounts+ Payable Assets Stockholders' Equity Revenue Accounts Inventory Receivable Retained Earnings Common+ Events 1. Stock 2. Pur inv 3. Freight 4a. Sold inv Stock 60,000+ 60,000 FA OA OA 60,000 + 4b. Cost 5. Pd. frt 6a. Ret. sale 6b. Ret. inv 7. | Coll, AR 8. Pd. AP 9. Pd. exp 10 Pd. exp Total 60,000 + 60,000 60.000