On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's...

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On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation: 1. Started the business by issuing common stock for $30,000 cash. 2. Paid $19,000 cash to purchase inventory. 3. Sold merchandise that cost $10,000 for $21,000 on account. 4. Collected $16,000 cash from accounts receivable. 5. Paid $3,750 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. b-1. Prepare an income statement. ces b-2. Prepare a balance sheet. b-3. Prepare a statement of cash flows. c. Since Jana sold inventory for $21,000, she will be able to recover more than half of the $30,000 she invested in the stock. Do you agree with this statement? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. (If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require input. Enter any decreases to account balances with a minus sign.) JANA'S FLOWERS Effect of Events on the Accounting Equation Event Cash + Assets Accounts Receivable 1. + + 2. + + Inventory = Common Stock + Stockholders' Equity Retained Earnings Accounts Titles for Retained Earnings + + 3a. + + + 3b. + + + 4. + + + 5 5. + + + Total $ 0+ $ 0+ $ 0 $ 0+ $ 0 < Req A Req B1 > On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation: 1. Started the business by issuing common stock for $30,000 cash. 2. Paid $19,000 cash to purchase inventory. 3. Sold merchandise that cost $10,000 for $21,000 on account. 4. Collected $16,000 cash from accounts receivable. 5. Paid $3,750 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. b-1. Prepare an income statement. ces b-2. Prepare a balance sheet. b-3. Prepare a statement of cash flows. c. Since Jana sold inventory for $21,000, she will be able to recover more than half of the $30,000 she invested in the stock. Do you agree with this statement? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. (If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require input. Enter any decreases to account balances with a minus sign.) JANA'S FLOWERS Effect of Events on the Accounting Equation Event Cash + Assets Accounts Receivable 1. + + 2. + + Inventory = Common Stock + Stockholders' Equity Retained Earnings Accounts Titles for Retained Earnings + + 3a. + + + 3b. + + + 4. + + + 5 5. + + + Total $ 0+ $ 0+ $ 0 $ 0+ $ 0 < Req A Req B1 >

Answer rating: 100% (QA)

Req A Account Titles for Retained Earnings Event Assets Liabilities Stockholders Equity 1 Cash 30000 ... View the full answer