ACCT 110 CHAPTER 3HW Carol Clocks Inc (CC)experienced the following events in 2019 and uses the perpetual inventory method. Beginning cash balance is $200,000. For each event, show: 1. Prepare a Cash...

ACCT 110 CHAPTER 3HW

Carol Clocks Inc (CC)experienced the following events in 2019 and uses the perpetual inventory method. Beginning cash balance is $200,000. For each event, show:

1. Prepare a Cash Flow Statement. (use proper format)

2. , balance sheet (A=L+E) and the income statement (R-E=NI) are affected, using specific dollar amount.

(present in example format below)

(show in equation form with clearly labeled and properly labeled) Be sure the equation balances.

1.CC issued $50,000 of common stock.

2.CC purchased for cash merchandise inventory for $100,000

3.The freight terms for the inventory merchandise in #1 were FOB shipping point. CC paid the freight cost of $500 in cash.

4.An inspection revealed that some of the inventory purchased in #1 was defective, and that had a cost of $5,000. CC returned this merchandise to the supplier.

5.CC sold 100 clocks at a sales price of $300 each ON ACCOUNT to customers. CC had purchased the merchandise inventory sold for $10,000 (#1). HINT: it is now that the merchandise inventory becomes an expense.

6.CC customers returned some merchandise CC had sold them in #5. The merchandise had been sold for the $3,000 and had been purchased by CC for $1,000.

7.CC paid (in cash) freight cost of $4,000 for goods delivered to customers in #5, FOB destination.