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; transportation cost of $1,870 paid in cash. 4. Sold inventory on account that cost $51,000 for $97,000. 5. Transportation cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the transportation cost 6. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320. 7. Collected $79,540 cash from accounts receivable. 8. Pald $56,200 cash on accounts payable. 9. Paid $3,020 for advertising expense. 10. Paid $4,050 cash for insurance expense. . THE PET STORE Horizontal Statements Model for Year 1 Balance Sheet Liabilities Stockholders' Equity Accounts Common Retained Inventory Payable Stock Earnings 70,000 Revenue Income Statement Expenso - Net Income Statement of Cash Flow Assets Accounts Receivable Events Cash 70,000 FA 70.000 . + + . - 1. Stock 2. Puri 3. Transport 4. Sold in 4. Cost 5. Patron sa Rot sale 66. Rete 7. Coll AR PdAP 9.Pd.es 10 Pd exp End Bal . 0 70.000 0. 70.000 70.000