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At the beginning of 2012, the Jeater company had the following balances in its accounts: During 2012, the company experienced…

At the beginning of 2012, the Jeater company had the following balances in its accounts: During 2012, the company experienced the following events. 1. Purchased inventory that cost $2,000 on account from Blue Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight cost of $110 were paid in cash. 2. Returned $200 of the inventory that it had purchased because the inventory was damaged in transit. The freight company agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Blue Company within the cash discount period. 4. Sold inventory that had cost $3,000 for $5,500 on account, under terms 2/10, n/45 5. Recieved merchandise returned from a customer. The merchandise orignally cost $400. and was sold to the customer for $710 cash during the previous accounting period. The customer was paid $710 cash for the returned merchandise/ 6. Delivered goos FOB destination in event 4. Freight cost of $60 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $7,970 of inventory was on hand at te end of the accounting period. REQUIRED a.Indentify these events as assets source (AS), asset use (AU), Asset exchange (AE), or claims exchange (CE) b.Record each event in a statements model like the following. C. Prepare an income statement, a statement of change in stockholders’ equity, a balance sheet, and a statemet of cash flows.

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