Reference no: EM13933386

The Sports Store experienced the following events for the 2013 accounting period:

1. Acquired $40,000 cash from the issue of common stock. 
2. Purchased $78,000 of inventory on account. 
3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
4. Sold inventory on account that cost $46,000 for $72,000. 
5. Freight cost on the goods sold in Event 4 was $560. The goods were shipped FOB destination. Cash was paid for the freight cost. 
6. Customer in Event 4 returned $5,100 worth of goods that had a cost of $2,950. 
7. Collected $61,500 cash from accounts receivable. 
8. Paid $66,100 cash on accounts payable. 
9. Paid $2,600 for advertising expense. 
10. Paid $3,100 cash for insurance expense. 

Required: 

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

b. Record each event in a horizontal statements model like the following one. The first event is rcorded as anexample