Scott Company is a merchandising business that was started in 2012. Scott uses the perpetual inventory system. It experienced the following events during 2012.
 
 1. Acquired $25,000 cash by issuing common stock
 2. Purchased inventory on account that cost $14,000, terms 2/10, n/30
 3. Sold inventory that had cost $8,400 for $15,000 cash
 4. Paid for the merchandise referred to in event 2, within the discount period
 
 Required:
 
 1) Record the events in the financial statements; include column totals.
 2) Prepare an income statement for 2012.
 3) What is the amount of total assets at the end of 2012?