Mark Dixon started a small merchandising business in 2012. The business experienced the following events during its

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Mark Dixon started a small merchandising business in 2012. The business experienced the following events during its first year of operation. Assume that Dixon uses the perpetual inventory system.

1. Acquired $40,000 cash from the issue of common stock.

2. Purchased inventory for $30,000 cash.

3. Sold inventory costing $20,000 for $32,000 cash.

Required

a. Record the events in a statements model like the one shown below.

b. Prepare an income statement for 2012 (use the multistep format).
c. What is the amount of total assets at the end of theperiod?

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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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Mark Dixon started a small merchandising business in 2012. The business experienced the following events during its

Question:

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

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