The Pet Store experienced the following events for the Year $1$ accounting period:

Acquired $$95,000$ cash from the issue of common stock.

Purchased $$84,000$ of inventory on account.

Received goods purchased in Event $2$ FOB shipping point; freight cost of $$1,050$ paid in cash.

Sold inventory on account that cost $$42,000$ for $$79,000.$

Freight cost on the goods sold in Event $4$ was $$1,360.$ The goods were shipped FOB destination. Cash was paid for the freight cost.

Customer in Event $4$ returned $$5,320$ worth of goods that had a cost of $$2,710.$

Collected $$64,780$ cash from accounts receivable.

Paid $$63,200$ cash on accounts payable.

Paid $$2,690$ cash for advertising expense.

Paid $$4,090$ cash for insurance expense.

Required

a$.$ Which of these events affect period $($selling and administrative$)$ costs? Which result in product costs?

b$.$ Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of

cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify

the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ The first event is recorded as an

example.

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ The first event is recorded as an examp