Accounting | Accounting homework help

     

At the beginning of   2013, the Bradley Company had the following balances in its accounts:

  

 

 Cash

$

8,600

 

 Inventory

2,600

 

 Common   stock

8,100

 

 Retained   earnings

3,100

    

  

During 2014, the   company experienced the following events:

  

1.

Purchased inventory that cost $6,100 on   account from Bivins Company under terms 2/10, n/30. The merchandise was   delivered FOB shipping point. Freight costs of $560 were paid in cash.

 

2.

Returned $350 of the inventory that it had   purchased because the inventory was damaged in transit. The seller agreed to   pay the return freight cost.

 

3.

Paid the amount due   on its account payable to Bivins Company within the cash discount period.

 

4.

Sold inventory that   had cost $6,600 for $9,600 on account, under terms 2/10, n/45.

 

5.

Received merchandise returned from a   customer. The merchandise originally cost $560 and was sold to the customer   for $860 cash. The customer was paid $860 cash for the returned merchandise.

 

6.

Delivered goods FOB   destination in Event 4. Freight costs of $660 were paid in cash.

 

7.

Collected the amount   due on the account receivable within the discount period.

 

8.

Took a physical count indicating that $2,300   of inventory was on hand at the end of the accounting period.

     

b.

Record each event in a statements model like   the following one. 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.   The first event is recorded as an example. (Enter any decreases to account balances and   cash outflows with a minus sign.)

Fill out the rest part of my sheet and fix the errors.