010056 References \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ REDD COMPANY } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline Fot the Year Ended December 31, Year 2 \\ \hline Cost of goods sold & \\ \hline Gross margin & \\ \hline Operating expenses & \\ \hline Transportation-out & \\ \hline Net income & \\ \hline \end{tabular} Prepare a statement of changes in stockholders' equity. A:-ated with a minus sign. Problem 3-26A (Algo) Comprehensive cycle problem: Perpetual system Lo 3-2, 3-3, 3-4, 3-5. 3-6, 3-7 [The following information applies to the questions displayed below] At the beginning of Year 2, the Redd Company had the following balances in its accounts: During Year 2, the company experienced the following events 1. Purchased inventory that cost $6,300 on account from Ross Company under terms 2/10,n/30. The merchandise was delivered FOB shipping point. Freight costs of $580 were paid ip cash. 2. Returned $400 of the inventory that it had purchased because the inventory was damaged in transit. The sellei agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold imventory that had cost $6,800 for $9.800 on account, under terms 2110,n/45. 5. Recelved merchandise returned from a customer. The merchandise originally cost $580 and was sold to the customes for $880 cash. The customer was paid $880 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4 . Freight costs of $680 were paid in cash- 7. Collected the amount due on the account recelvable within the discount period 3. Took a phystical count indicating that $2.500 of inventory was on hand at the end of the accounting period. \begin{tabular}{|c|c|c|c|} \hline \multirow{3}{*}{ Part 2 or 2} & \multicolumn{3}{|c|}{ REDD COMPANY } \\ \hline & \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline & \multicolumn{3}{|c|}{ As of December 31, Year? } \\ \hline \multirow{4}{*}{\begin{tabular}{l} 33 \\ points \end{tabular}} & Assets & & \\ \hline & Cash & & \\ \hline & Retained earnings & & \\ \hline & Common stock & & \\ \hline \multirow{8}{*}{ References } & Total assets & s & 0 \\ \hline & Liabilities & & \\ \hline & Stockholders' Equity & & \\ \hline & Common stock & & \\ \hline & Accounts recelvable & & \\ \hline & Retained earnings & & \\ \hline & Total stockholders' equity & s & 0 \\ \hline & Total liabilities and stockholders equity & $ & 0 \\ \hline \end{tabular} 010056 References \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ REDD COMPANY } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline Fot the Year Ended December 31, Year 2 \\ \hline Cost of goods sold & \\ \hline Gross margin & \\ \hline Operating expenses & \\ \hline Transportation-out & \\ \hline Net income & \\ \hline \end{tabular} Prepare a statement of changes in stockholders' equity. A:-ated with a minus sign. Problem 3-26A (Algo) Comprehensive cycle problem: Perpetual system Lo 3-2, 3-3, 3-4, 3-5. 3-6, 3-7 [The following information applies to the questions displayed below] At the beginning of Year 2, the Redd Company had the following balances in its accounts: During Year 2, the company experienced the following events 1. Purchased inventory that cost $6,300 on account from Ross Company under terms 2/10,n/30. The merchandise was delivered FOB shipping point. Freight costs of $580 were paid ip cash. 2. Returned $400 of the inventory that it had purchased because the inventory was damaged in transit. The sellei agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold imventory that had cost $6,800 for $9.800 on account, under terms 2110,n/45. 5. Recelved merchandise returned from a customer. The merchandise originally cost $580 and was sold to the customes for $880 cash. The customer was paid $880 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4 . Freight costs of $680 were paid in cash- 7. Collected the amount due on the account recelvable within the discount period 3. Took a phystical count indicating that $2.500 of inventory was on hand at the end of the accounting period. \begin{tabular}{|c|c|c|c|} \hline \multirow{3}{*}{ Part 2 or 2} & \multicolumn{3}{|c|}{ REDD COMPANY } \\ \hline & \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline & \multicolumn{3}{|c|}{ As of December 31, Year? } \\ \hline \multirow{4}{*}{\begin{tabular}{l} 33 \\ points \end{tabular}} & Assets & & \\ \hline & Cash & & \\ \hline & Retained earnings & & \\ \hline & Common stock & & \\ \hline \multirow{8}{*}{ References } & Total assets & s & 0 \\ \hline & Liabilities & & \\ \hline & Stockholders' Equity & & \\ \hline & Common stock & & \\ \hline & Accounts recelvable & & \\ \hline & Retained earnings & & \\ \hline & Total stockholders' equity & s & 0 \\ \hline & Total liabilities and stockholders equity & $ & 0 \\ \hline \end{tabular}