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Junker's Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model.. During Year 2, Junker's Stash experienced the following business events: 1. Paid cash to purchase $94,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,880 were paid in cash by the responsible party. 3a. Sold merchandise for $108,000 under terms 1/10, n/30. 3b. Recognized $53,900 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,580. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,490. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,890 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $7,450 for selling and administrative expenses. 8. Sold the land for $10,300 cash. Required a. Record the above transactions in a horizontal financial statements model. b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Assume sales are the same for both years. Complete this question by entering your answers in the tabs below.
ent 0. bal. 1. 2. 3a. 3b. 4a. 4b. 5. 60. 6b. 7. 8. d. bal Cash 104,000+ (94,000)+ (1,880)+ + (1,890)+ (7,450)+ 10,300+ 9,080 + Assets Accounts Receivable + + + 108,000+ + (2,580) * 105,420. Balance Sheet Inventory 17,400+ 4.000 1,880+ 53.900. 1,490 168,670 + Land JUNKER'S STASH Financial Statements Model Stockholders' Equity Common) Retained Stock Earnings 94,000+ 43,200 + 15,800 = 10.300 26,100 = . * 94,000+ Income Statement Revenue! Expensel Gain Loss 108.000 (2,580) 105,420 43.200 (Required A Net Income Statement of Cash Flow QA (94,000) (1,880) OA 108,000 53.900 (2,580) 1,490 (1,890) (1,890) OA OA (7,450) (7.450) OA 10,300 IA 151,470 (94,920) 53.900- (1,490) 1,890 7,450 61,750 Required B >
Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of net sales. (Round your Intermediate calculations and final answer Net sales Required C
Prepare a multistep income statement. Include common size percentages on the income decimal place.) JUNKER'S STASH Income Statement For the Year Ended December 31, Year 2 Operating expenses Total operating expenses Non-operating items $ 0.0 0.0 0.0 0.0 do de de % % 0.0 % % % de do % 0.0 % 0.0 % % 0.0 % Required D