the wedding shopfinancial accounting exercise 4-14a

The Wedding Shop (TWS) started the 2013 accounting period with the balances given in the financial statements model shown below. During 2013 TWS experienced the following business events: Purchased $60,000 of merchandise inventory on account, terms 2/10, n/30. The goods that were purchased in Event 1 were delivered FOB shipping point. Freight COSTS of $1, 500 were paid in cash by the responsible party. Returned $3,000 of goods purchased in Event 1. Recorded the cash discount on the goods purchased in Event 1. Paid the balance due on the account payable within the discount period. Recognized $59,000 of cash revenue from the sale of merchandise. Recognized $45,000 of cost of goods sold. The merchandise in Event 5a was sold to customers FOB destination. Freight costs of $1, 400 were paid in cash by the responsible party. Paid cash of $9,000 for selling and administrative expenses. Sold the land for $14, 500 cash. Record the above transactions in financial statements model like the one shown below. Prepare a multistep income statement. Include common size percentages on the income statement