Milo Clothing experienced the following events during 2018, its first year of operation: ...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Milo Clothing experienced the following events during 2018, its first year of operation:
Acquired $16,000 cash from the issue of common stock.
Purchased inventory for $7,000 cash.
Sold inventory costing $4,200 for $7,140 cash.
Paid $950 for advertising expense.
Required
Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)
MILO CLOTHING
Effect of Events on the Financial Statements
Event
Assets
=
Stockholders Equity
Revenue
Expenses
=
Net Income
Statement of Cash Flows
Cash
+
Inventory
=
Common Stock
+
Retained Earnings
1.
+
=
+
=
2.
+
=
+
=
3a.
+
=
+
=
3b.
+
=
+
=
4.
+
=
+
=
Total
0
+
0
=
0
+
0
0
0
=
0
0
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
