Hilo Clothing experienced the following events during 2014, its first year of operation:
1. Acquired $25,000 cash from the issue of common stock.
2. Purchased inventory for $12,000 cash.
3. Sold inventory costing $8,000 for $15,000 cash.
4. Paid $1,200 for advertising expense.

Required
Record the events in a statements model like the one shownbelow.

Transcribed Image Text:

Assets Equity Rev.- Exp. Net Inc. Cash Flow Cash Inv. Com. Stk.Ret. Earn.