Basic transactions for three accounting cycles: perpetual system
Ferguson Company was started in 2008 when it acquired $60,000 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.
|
2008 |
2009 |
2010 |
|
|
Purchases of inventory |
$24,000 |
$12,000 |
$20,500 |
|
Sales |
26,000 |
30,000 |
36,000 |
|
Cost of goods sold |
13,400 |
18,500 |
20,000 |
|
Selling and administrative expenses |
5,500 |
8,200 |
10,100 |
Required
Prepare an income statement (use the multistep format) and balance sheet for each fiscal year.