Milo Clothing experienced the following events during Year 1, its first year of operation:
1. Acquired $30,000 cash from the issue of common stock.
2. Purchased inventory for $15,000 cash.
3. Sold inventory costing $9,000 for $20,000 cash.
4. Paid $1,500 for advertising expense.

Required
Record the events in a horizontal financial statements model like the one shown next.

Transcribed Image Text:

Balance Sheet Income Statement Statement of Cash Flows Assets Stk. Equity Net Inc. Com. Stk. Ret. Earn. Cash Exp. Inv. Rev.