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201 ACC WEEK TWO SOLUTIONS ASSIGNMENT ONE PROBLEM 3-22 Event Product Costs Period Costs a. C b. C c. C d. C e. C f. C g. C h. C i. C j. C PROBLEM 3-25 a. Event No. Event Type Event No. Event Type 1a. AS 5a. AU 1b. AE 5b. AS 2. AU 6. AU 3. AU 7. AS 4a. AS 8. AU 4b. AU b. Jeater Company Horizontal Statements Model - 2012 Balance Sheet Income Statement Statement of Event No. Cash + Accts. Rec. + Mdse. Inv. = Accts. Pay + Comm Stock + Ret. Earn. Rev. Exp. = Net Inc. Cash Flows Bal. 4,300 NA 9,000 NA 10,000 3,300 NA NA NA 1a. NA NA 2,200 2,200 NA NA NA NA NA NA 1b. (110) NA 110 NA NA NA NA NA NA (110) OA 2. NA NA (200) (200) NA NA NA NA NA NA 3 .1 (1,980) NA (20) (2,000) NA NA NA NA NA (1,980) OA 4a. NA 5,500 NA NA NA 5,500 5,500 NA 5,500 NA 4b. NA NA (3,000) NA NA (3,000) NA 3,000 (3,000) NA 5a. (710) NA NA NA NA (710) (710) NA (710) (710) OA 5b. NA NA 400 NA NA 400 NA (400) 400 NA 6. (60) NA NA NA NA (60) NA 60 (60) (60) OA 7. 2 5,390 (5,500) NA NA NA (110) (110) NA (110) 5,390 OA 8. NA NA (520) NA NA (520) NA 520 (520) NA Bal. 6,830 -07,970 -010,000 4,800 4,680 3,180 1,500 2,530 NC PROBLEM 3-25 c. Jeater Company Financial Statements For the Year December Ended 31, 2012 Income Statement Net Sales $4,680 Cost of Goods Sold (3,120) Gross Margin 1,560 Operating Expenses Transportation-out (60) Operating/Net Income $1,500 Statement of Changes in Stockholders Equity Beginning Common Stock $10,000 Plus: Stock Issued -0- Ending Common Stock $10,000 Beginning Retained Earnings $ 3,300 Plus: Net Income 1,500 Ending Retained Earnings 4,800 Total Stockholders Equity $14,800 PROBLEM 3-25 c. (cont.) Jeater Company Financial Statements Balance Sheet As of December 31, 2012 Assets Cash $ 6,830 Merchandise Inventory 7,970 Total Assets $14,800 Liabilities $ -0- Stockholders Equity Common Stock $10,000 Retained Earnings 4,800 Total Stockholders Equity 14,800 Total Liabilities and Stockholders Equity $14,800 Statement of Cash Flows For the Year Ended December 31, 2012 Cash Flows From Operating Activities: Inflow from Customers* $4,680 Outflow for Inventory** (2,090) Outflow for Expenses (60) Net Cash Flow from Operating Activities $2,530 Cash Flows From Investing Activities -0- Cash Flows From Financing Activities -0- Net Change in Cash 2,530 Plus: Beginning Cash Balance 4,300 Ending Cash Balance $6,830 ... View Full Document

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