Total assets and total equity increase 8y 3900 ) Which of the following statements is true about period costs? ) Period costs do not adhere to the matching principle ) Period costs are expensed when the products associated with these costs are sold. C) Period costs are usually recorded as assets. D) Most period costs are expensed in the period the costs are incurred. 20) The cost of goods sold account is classified as: A) an asset. B) an expense. C) a liability. D) a contra asset. Problems: Show and label all calculations 1. (35 points) Record the events in a horizontal financial statement and answer the questions asked below. Evans Computers was started in 2018. The company had the following accounting transactions during its first year 1. Started business when it acquired $50,000 cash from the issue of common stock 2. Purchased merchandise with a cost of $30,000 on account, terms 2/10, n/30 3. Paid off one-half of the accounts payable within the discount period. 4. Sold merchandise on account for $28,000 on account. Evans gave his customers terms of 1/20, n/30. The merchandise Evans Computers $16,000. Evans adopted the perpetual inventory system Collected cash from the account receivable within the discount period. 5. 6. Paid $2500 in operating expenses 7. Paid the balance due on the accounts payable. The payment was not made within the discount period What was the gross margin (profit) for the period? What was the gross margin percentage