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The following events were completed by Dana s Imports in September 2018 Sept 1 Acquired $50,000 cash from the issue of common stock Purchased $28000 of merchandise on account with terms

The following events were completed by Dana s Imports in September 2018: Sept. 1 Acquired $50,000 cash from the issue of common stock. 1 Purchased $28,000 of merchandise on account with terms 2/10, n/30. 5 Paid $600 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $15,000 to customers for $31,000 on account, with terms 2/10, n/30. 8 Returned $600 of defective merchandise from the September 1 purchase to the supplier. 10 Paid cash for the balance due on the merchandise purchased on September 1. 20 Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. 30 Paid $2,450 cash for selling expenses. Required a. Record each event in a statements model like the following one. The first event is recorded as an example. b. Prepare an income statement for the month ending September 30. c. Prepare a statement of cash flows for the month ending September 30. d. Explain why there is a difference between net income and cash flow from operating

Apr 11 2020 View more View Less

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