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Justin Swords started a small merchandising business in 2013. The business experienced the following events during its first year of operation. Assume that Swords uses the perpetual inventory system.
1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $60,000 cash. 3. Sold inventory costing $48,000 for $82,000 cash.
Required:
a. Record the events in general journal format. b. Post the entries to T-accounts. c. Prepare an income statement for 2013 (use the multi step format). d. What is the amount of total assets at the end of the period?
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