Homework SourseMarlo clothing experience the following events the 2018 its
Marlo clothing experience the following events the 2018 its first year of operation
On January 1,2018, Jana started a small flower merchandising business that she named Jána\'s Flowers. The company experienced the 1 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 es 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. b-2. Prepare a balance sheet b-3.Prepare a statement of cash flows Since Jana sold inventory for $21.000, she will be able to recover more than hall 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 Reg 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. (Select \"NA\" if there is no effect on the \"Accounts Titles for Retained Earnings\". Enter any decreases to account balances with a minus sign.) Solution
2.
3.
5.
Yes, Jana could recover the more than half of the investment in Common Stock (30000). She collected 16,000 from the sales and paid 3750 for expenses. Jana\'s closing cash balance is 23,250 which is more than half of the investment.
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| Assets | Liabilities | Stockholder\'s Equity | ||||||||||
| Event | Cash | + | Accounts Receivable | + | Stock | = | Accounts Payable | + | Common Stock | + | Retained Earnings | Account Tilles |
| 1 | $ 30,000 | + | + | = | + | $ 30,000 | + | |||||
| 2 | $ (19,000) | + | + | $ 19,000 | = | + | + | |||||
| 3 | + | $ 21,000 | + | = | + | + | $ 21,000 | Revenue | ||||
| + | + | $ (10,000) | = | + | + | $ (10,000) | Cost of Goods Sold | |||||
| 4 | $ 16,000 | + | $ (16,000) | + | = | + | + | |||||
| 5 | $ (3,750) | + | + | = | + | + | $ (3,750) | Operationg Expesnes | ||||
| $ 23,250 | $ 5,000 | $ 9,000 | $ - | $ 30,000 | $ 7,250 |
