Basic transactions for three accounting cycles: perpetual system
Ginger’s Flower Company was started in 2012 when it acquired $80,000 cash from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all transactions were cash transactions.
|
|
2012 |
2013 |
2014 |
|
Purchases of inventory |
$ 60,000 |
$ 90,000 |
$ 130,000 |
|
Sales |
102,000 |
146,000 |
220,000 |
|
Cost of goods sold |
54,000 |
78,000 |
140,000 |
|
Selling and administrative expenses |
40,000 |
52,000 |
72,000 |
Required
Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.)