Bali Sales Company experienced the following events: Purchased merchandise inventory for cash.
Purchased merchandise inventory on account.
Returned merchandise purchased on account.
Sold merchandise inventory for cash. Label the revenue recognition 4a and the expense recognition 4b.
Paid cash on accounts payable not within the discount period.
Sold merchandise inventory on account. Label the revenue recognition 6a and the expense recognition 6b.
Paid cash for selling and administrative expenses.
Paid cash for transportation-in.
Collected cash from accounts receivable.
Paid cash for transportation-out.
Required:
Identify each event as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects the financial statements by placing a + for increase, -for decrease, or NA for not affected under each of the components in the following statements model. Assume the use of the perpetual inventory system. The first event is recorded as an example.
Event Event Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow
Type Type
1 AE + - = NA + NA NA - NA = NA -0A

Bali Sales Company

Identifying events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE):

Event Type Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow Type

1.  AE             + -      = NA    + NA      NA   - NA  = NA           -0A

2. CE             +        = +       +  NA     NA   -  NA =  NA          -OA

3. CE             -         = -       +  NA     NA   -  NA =  NA          +OA

4a. AS           +        =  NA   +  +         +     -  NA =  +              +OA

4b. AU          -         =  NA   +  -         NA   -  +   =  -                -OA

5. CE            -         =  -       +  NA     NA   -  NA =  NA          -OA

6a. AS           +        =  NA   +  +         +     -  NA =  +              +OA

6b. AU          -         =  NA   +  -         NA   -  +   =  -                -OA

7. AU            -         =  NA   +  -         NA   -  -   =   -                -OA

8. AU            -         =  NA   +  -         NA   -  -   =   -                -OA

9. AE            +-       =  NA    + NA     NA   - NA  = NA            -OA

10. AU            -       =  NA   +  -         NA   -  -   =   -                -OA

Explanation:

All the events are classified under operating activities for the cash flow type.  There are no investing activities (IA) nor financing activities (FA) in any of the events listed.  The workings above show the accounting equation in operation as it affects elements of the financial statements.

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

the answer is a. $209,000