Kona Clothing experienced the following events during 2012, its first year of operation: 1. Acquired $14,000 cash

Question:

Kona Clothing experienced the following events during 2012, its first year of operation:

1. Acquired $14,000 cash from the issue of common stock.

2. Purchased inventory for $8,000 cash.

3. Sold inventory costing $6,000 for $9,000 cash.

4. Paid $800 for advertising expense.

Required

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

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Survey of Accounting

ISBN: 978-0078110856

3rd Edition

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

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Question Posted: May 19, 2012 03:48 AM

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Kona Clothing experienced the following events during 2012, its first year of operation: 1. Acquired $14,000 cash

Question:

Assets Equity Rev. - Exp. = Net Inc. Cash Flow Cash+InvCom. StkRet. Earn.

Step by Step Answer:

Kona Clothing Effect of Events on the Financial Statements Assets Equity ...View the full answer

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