Please help me figure out missed problems Exercise 317 Effec

Please help me figure out missed problems

Exercise 3-17 Effect of cash discounts on financial statements: Perpetual system LO 3-4 Clayton Computers was started in 2014. The company experienced the following accounting events during ts first year of operation. 1. Started business when it acquired $86,000 cash from the issue of common stock. 2. Purchased merchandise with a list price of $70,000 on account, terms 2/10, n/30. 3.Paid off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account that had a list price of $56,900. Credit terms were 1/20, n/30. The merchandise had cost Clayton Computers $34,100 5.Collected cash from the account receivable within the discount period. 6.Paid $10,200 cash for operating expenses 7.Paid the balance due on accounts payable. The payment was not made within the discount period. Required a. Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

Solution

Cash Accounts Receivable Inventory Accounts Payable Common Stock Retained Earnings Revenue Expenses Net income Statement of cash flows 1 86000 86000 86000 FA 2 70000 70000 0 NA 3 -34300 -700 -35000 -34300 OA 4a 56900 56900 56900 56900 0 NA 4b -34100 -34100 34100 -34100 5 56331 -56900 -569 -569 0 -569 56331 OA 6 -10200 -10200 10200 -10200 -10200 OA 7 -35000 -35000 -35000 OA 62831 0 35200 0 86000 12031 56331 44300 12031 62831 NC