Question

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 years' operating activities. Assume that all transactions were cash transactions.
2008 2009 2010
Purchase of Inve 24,000 12,000 25,500
Sales 26,000 30,000 36,000
Cost goods sold 13,400 18,500 20,000
Selling & administrative expenseses (2008)5,500 (2009)8,200 (2010)10,100
Required
Prepare an income statement (use the multistep format) and balence sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.)