Junker's Stash started the Year 2 accounting period with the balances given in the following horizontal...

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Junker's Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model. During Year 2, Junker's Stash experienced the following business events: 1. Paid cash to purchase $92,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,840 were paid in cash by the responsible party. 3a. Sold merchandise for $105,000 under terms 1/10, n/30. 3b. Recognized $52,900 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,540. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,470. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,870 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $7,400 for selling and administrative expenses. 8. Sold the land for $10,200 cash. Required: a. Record the above transactions in a horizontal financial statements model. b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Assume sales are the same for both years. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the above transactions in a horizontal financial statements model. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for Net change in cash. Enter any decre minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed. Round your answers t Junker's Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model. During Year 2, Junker's Stash experienced the following business events: 1. Paid cash to purchase $92,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,840 were paid in cash by the responsible party. 3a. Sold merchandise for $105,000 under terms 1/10, n/30. 3b. Recognized $52,900 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,540. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,470. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,870 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $7,400 for selling and administrative expenses. 8. Sold the land for $10,200 cash. Required: a. Record the above transactions in a horizontal financial statements model. b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Assume sales are the same for both years. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the above transactions in a horizontal financial statements model. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for Net change in cash. Enter any decre minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed. Round your answers t

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Heres the horizontal financial statements model to record the transactions for Junkers Stash bash Copycode Cash Merchandise Inventory Cost of Goods So... View the full answer