The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $85,000...

Transcribed Image Text:

The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $85,000 cash from the issue of common stock. 2. Purchased $80,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; transportation cost of $950 paid in cash. 4. Sold inventory on account that cost $36,000 for $67,000. 5. Transportation cost on the goods sold in Event 4 was $1,180. The goods were shipped FOB destination. Cash was paid for the transportation cost. 6. Customer in Event 4 returned $5,540 worth of goods that had a cost of $2,820. 7. Collected $54,940 cash from accounts receivable. 8. Paid $57,200 cash on accounts payable. 9. Paid $3,220 for advertising expense. 0. Paid $3,750 cash for insurance expense. Required: a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. Transaction Cost 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $85,000 cash from the issue of common stock. 2. Purchased $80,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; transportation cost of $950 paid in cash. 4. Sold inventory on account that cost $36,000 for $67,000. 5. Transportation cost on the goods sold in Event 4 was $1,180. The goods were shipped FOB destination. Cash was paid for the transportation cost. 6. Customer in Event 4 returned $5,540 worth of goods that had a cost of $2,820. 7. Collected $54,940 cash from accounts receivable. 8. Paid $57,200 cash on accounts payable. 9. Paid $3,220 for advertising expense. 0. Paid $3,750 cash for insurance expense. Required: a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. Transaction Cost 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.