The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $70,000 cash from the issue of common stock. 2. Purchased $61,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. 4. Sold inventory on account that cost $51,000 for $97,000, 5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 retumed $4,540 worth of goods that had a cost of $2,320. 7. Collected $79,540 cash from accounts receivable. 8. Paid $56,200 cash on accounts payable. 9. Paid $3,020 cash for advertising expense. 10. Paid $4,050 cash for insurance expense. Required a. Which of these events affect period (selling and administratlve) costs? Which result in product costs? b. Record the above events in a horizontal statement model. 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 cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. Complete this question by entering your answers in the tabs below. Which of these tivents affect period (seiling and administrative) costs? Which result in product costs? (Not all cells require entryi) 1. Acqueled 570.000cash trom the lssue of cammon stock. 2. Purchased 561,000 of invemery on account. 3. Received goods purchased in Event 2 FOB shipping point: freight cost of $1,870 poid in cesh. 4. Sold imentory on account that cost $51000 for $97000. 5. Fieight cost on the goods seld in Event 4 was $1020. The goods were shipped FOB destination Cash was paid for the treight cost 6. Customer in Event 4 returned $4,540 worth of goeds that had a cost of $2,320. 7. Colected 579.540 cash from accounts recevable. 8. Pald $56,200 cash on accounts payable. 9. Pald \$3,020 cash for advertising expense. to. Paid 54.050 cesh for insurance expense. Required a. Which of these evects affect period fseling and administratwo) costs? Which rowit in product costs? b. Pecord the sbove events in a horizental statement modet. in the Cish Flow column, use oa to designute operating activity, ia for. investment activib. FA for financing activity or NC for net change in cash. If the element is not affected by the event, leave the ceil: blank: The first event is recorded as an example. Complete this question by entering your answers in the tabe below. Not all celas recture evern) The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $70,000 cash from the issue of common stock. 2. Purchased $61,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. 4. Sold inventory on account that cost $51,000 for $97,000, 5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 retumed $4,540 worth of goods that had a cost of $2,320. 7. Collected $79,540 cash from accounts receivable. 8. Paid $56,200 cash on accounts payable. 9. Paid $3,020 cash for advertising expense. 10. Paid $4,050 cash for insurance expense. Required a. Which of these events affect period (selling and administratlve) costs? Which result in product costs? b. Record the above events in a horizontal statement model. 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 cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. Complete this question by entering your answers in the tabs below. Which of these tivents affect period (seiling and administrative) costs? Which result in product costs? (Not all cells require entryi) 1. Acqueled 570.000cash trom the lssue of cammon stock. 2. Purchased 561,000 of invemery on account. 3. Received goods purchased in Event 2 FOB shipping point: freight cost of $1,870 poid in cesh. 4. Sold imentory on account that cost $51000 for $97000. 5. Fieight cost on the goods seld in Event 4 was $1020. The goods were shipped FOB destination Cash was paid for the treight cost 6. Customer in Event 4 returned $4,540 worth of goeds that had a cost of $2,320. 7. Colected 579.540 cash from accounts recevable. 8. Pald $56,200 cash on accounts payable. 9. Pald \$3,020 cash for advertising expense. to. Paid 54.050 cesh for insurance expense. Required a. Which of these evects affect period fseling and administratwo) costs? Which rowit in product costs? b. Pecord the sbove events in a horizental statement modet. in the Cish Flow column, use oa to designute operating activity, ia for. investment activib. FA for financing activity or NC for net change in cash. If the element is not affected by the event, leave the ceil: blank: The first event is recorded as an example. Complete this question by entering your answers in the tabe below. Not all celas recture evern)
