4 At the beginning of Year 2, the Redd Company had the following balances in its accounts Ch 113.30 Every 5.500 Land Consteck 2.200 this 19.000 During Your 2. the company experienced the following events 6. Delivered 1. Purchased Inventory that cost $12.400 on account from Ross Company under terms 20.30. The merchandise was delivered 2. Retured $550 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost 3. Paid the amount due on its account payable to Ross Company within the cash discount period 5. Received merchandise returned from a customer. The merchandise original cost $800 and was sold to the customer for $2.300 cash. The customer was paid $2.300 cash for the returned merchandise goods FOB destination in Event 4. Freight costs of $810 were paid in cash 7. Collected the amount due on the account receivable within the discount period 9. Recognized accrued interest income of $300 10. Took a physical count indicating that S4300 of inventory was on hand at the end of the accounting period. Hint Determine the current balance in the Inventory account before calculating the amount of the inventory write down Required: a. Idently each of these events as asset source AS, assot use (AU), asset exchange AB), or claimsexchange (CE). Also explain how each event would affect the financial statements by placing a for increase - for decrease, and for increase and decrease under each of the components in the following statements model. Assume that the perpetual inventory method is used when an event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example t. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the d. Prepare a multiste income statement a statement of changes in stockholders' equity, a balance sheet and a statement of cash e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post the Journal entry to the ledger accounts and prepare a post closing trial balance Complete this question by entering your answers in the tabs below. RA Rec Re: Re Rogo REI Res 2 Record the events in general journal format. Asume that the perpetual inventory method and grous method is used to try required for atractivevent, select "No journal entry required in the first count Viewracional Journal entry worksheet E G H... O Record the entry for inventory purchased on account from Ross company under terms 1/10, 1/30 views General Dwart Cred Ta Viewer Reg Reg Rec Re: Rega Ret RE Rec 2 Post the beginning balances and the events to the accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Parte Cash Beg Bel Sega EndN End B Accounts Receivable test Rece Beg Ba End Enda Land Pet OBS og Und End Common Stock seg ang End. Bal E B Sales Revenue Cost of GSM Boy Gel und Tenperation og Bog Bal and a Gain on Sale of Land be 5. Received merchandise returned from a customer. The merchandise originally cost $1800 and was sold to the customer for! cash. The customer was paid $2,300 cash for the returned merchandise 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300. 10. Took a physical count indicating that $4,300 of inventory was on hand at the end of the accounting period. Hint Determine current balance in the inventory account before calculating the amount of the inventory write down Required: a. Identity each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain each event would affect the financial statements by placing a + for increase, - for decrease, and +/- for increase and decrea under each of the components in the following statements modet Assume that the perpetual Inventory method is used. Whe event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example. b. Record the events in general Journal format. Assume that the perpetual inventory method and gross method is used. c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when post closing entry that is created in Part e. d. Prepare a multistep income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post th Journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Reg A Reg D Reqc Reg Di Reg D2 Reg D3 Reg D4 Reg E1 Reg E2 Prepare a multistep income statement for Year 2. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Operating expenses 0 Nonoperating items eBook Print References 1. Purchased Inventory that cost $12,400 on account from Ross Company under terms 2/10, 1/30. The merchandise was delivered FOB shipping point. Freight costs of $920 were paid in cash. 2. Returned $550 of the Inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost 3. Pald the amount due on its account payable to Ross Company within the cash discount period. 4. Sold Inventory that had cost $10,000 for $18,000 on account, under terms 2/10,n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,800 and was sold to the customer for $2,300 cash. The customer was paid $2,300 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash 7. Collected the amount due on the account receivable within the discount period, 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300 10. Took a physical count indicating that $4,300 of inventory was on hand at the end of the accounting period. Hint. Determine the current balance in the inventory account before calculating the amount of the inventory write down. Required: a. Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event would affect the financial statements by placing a + for increase. - for decrease, and +/T for increase and decrease under each of the components in the following statements model. Assume that the perpetual inventory method is used. When an event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example, b. Record the events in general Journal format Assume that the perpetual inventory method and gross method is used. c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Part e. d. Prepare a multistep Income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post the Journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Reg A Reg B Reg C Reg D1 Reg D2 Reg D3 Reg D4 Reg E1 Req E2 Prepare a statement of changes in stockholders' equity for Year 2 REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 Total stockholders' equity $ 0 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300. 10. Took a physical count indicating that $4.300 of inventory was on hand at the end of the accounting period. Hint Determine th current balance in the inventory account before calculating the amount of the inventory write down. Required: a. Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain each event would affect the financial statements by placing a + for increase, - for decrease, and +/- for increase and decrease under each of the components in the following statements model. Assume that the perpetual inventory method is used. When event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example. b. Record the events in general journal format Assume that the perpetual inventory method and gross method is used. c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when postin closing entry that is created in Part e. d. Prepare a multistep income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of ca flows for Year 2 e. Use a single general Journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post the journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Reg A Reg B ReqC Reg D1 Reg D2 Reg D3 ReqD4 Reg EI Reg E2 Prepare a balance sheet for Year 2. REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity 0 for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300 10. Took a physical count indicating that $4,300 of Inventory was on hand at the end of the accounting period. Hint: Determin current balance in the inventory account before calculating the amount of the Inventory write down. Required: a. Identity each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also expl each event would affect the financial statements by placing a + for increase, - for decrease, and +/- for increase and decre under each of the components in the following statements model. Assume that the perpetual Inventory method is used. W event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example. b. Record the events in general Journal format. Assume that the perpetual Inventory method and gross method is used. c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when pos closing entry that is created in Part e. d. Prepare a multistep income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of flows for Year 2 e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Reg E2 Reg A Reg B Reac Reg D1 Reg D2 Req 03 Req D4 Reg E1 Prepare a statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow froni operating activities: 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Ending cash balance SU IAS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain now each event would affect the financial statements by placing a + for increase, - for decrease, and +/- for increase and decrease under each of the components in the following statements model. Assume that the perpetual Inventory method is used. When an event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example b. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used. c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Parte. d. Prepare a multistep income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post the journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. ReqA Reg B Reqc Reg D1 Reg D2 Req D3 Reg D4 Reg E1 Reg E2 Use a single general Journal entry to close all revenue, gain, and expense accounts to the retained earnings account. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1. Purchased inventory that cost $12,400 on account from Ross Company under terms 2/10, 130. The merchandise was delivered FOB shipping point. Freight costs of $920 were pald in cash 2. Returned $550 of the inventory it had purchased because the inventory was damaged in transit The seller agreed to pay the return freight cost 3. Pald the amount due on its account payable to Ross Company within the cash discount period 5. Received merchandise returned from a customer . The merchandise originally cost $1,800 and was sold to the customer for $2,300 cash. The customer was paid $2,300 cash for the returned merchandise 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5.900. 9. Recognized accrued interest income of $300 10. Took a physical count indicating that $4,300 of inventory was on hand at the end of the accounting period. Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down. Required: a. Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event would affect the financial statements by placing a + for increase. - for decrease, and +/-r increase and decrease under each of the components in the following statements model. Assume that the perpetual inventory method is used. When an event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example, b. Record the events in general Journal format. Assume that the perpetual inventory method and gross method is used. c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Part e. d. Prepare a multistep income statement, a statement of changes in stockholders' equity, a balance sheet and a statement of cash flows for Year 2 e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account. Post the Journal entry to the ledger accounts and prepare a post-closing trial balance Complete this question by entering your answers in the tabs below. Reg 04 Reg El Reg E2 Reg A Reg B Regc Reg D1 Reg D2 Reg D3 Post the joumal entry to the ledger accounts and prepare a post-closing trial balance. REDD COMPANY Post Closing Trial Balance December 31, Year 2 Account Titles Debit Credit Total 0 $ 0