Question

The following events were completed by Dana's Imports in September 2018: 1 Acquired $46,000 cash from the issue of common stock. 1 Purchased $31,000 of merchandise on account vith terms 2/10, n/30 5 Paid $1,000 cash for freight to obtain nerchandise purchased on Sept. 8 Sold merchandise that cost $10,500 to eustomers for $17,500 on account, with terms 2/10, n/30 8 Returned $650 of defective merchandise from the September 1 purchase to the supplier 10 Paid cash for the balance due on the merchandise purchased on September 20 Received cash from ecustomers of September s sale in settlement of the account balances, but not within the discount period. 30 Paid $3,050 cash for selling expenses Required Record each event in a statements model like the following one. In the Cash Flow column, use for in a. OA to designate operating activity, IA activity, FA for financing activity NC for net change in cash and NA to indicate the element is not affected by the ent event. The first event is recorded as an example. b. Prepare an income statement for the month ending September 30 c. Prepare a statement of cash flows for the month ending September 30.

Answer 1