Brislin Co. experienced the following events for the 2007 accounting period: 1. Acquired ($5,000) cash from the

Question:

Brislin Co. experienced the following events for the 2007 accounting period:

1. Acquired $$5,000$ cash from the issue of common stock.
2. Purchased $$18,000$ of inventory on account.
3. Received goods purchased in Event 2 FOB shipping point. Freight cost of $$500$ paid in cash.
4. Returned $$2,000$ of goods purchased in Event 2 because of poor quality.
5. Sold inventory on account that cost $$14,300$ for $$22,000$.
6. Freight cost on the goods sold in Event 5 was $$200$. The goods were shipped FOB destination. Cash was paid for the freight cost.
7. Collected $$16,500$ cash from accounts receivable.
8. Paid $$12,000$ cash on accounts payable.

9. Paid $$1,100$ for advertising expense.
10. Paid $$2,200$ cash for insurance expense.

Required:

a. Which of these transactions result in period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

b. Record each event in a horizontal statements model like the following one. The first event is recorded as an example.

image text in transcribed