At the beginning of 2016, the Redd Company had the following balances in its accounts Cash $16,800 Inventory 7,000 Land 2,600 Common stock 15,000 Retained earnings 11,400 During 2016, the company experienced the following events 1 Purchased inventory that cost $11,800 on account from Ross Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $860 were paid in cash 2 Returned $750 of the inventory that 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 4 Sold inventory that had cost $9,500 for $15,500 on account, under terms 2 10, n 45 5 Received merchandise returned from a customer The merchandise originally cost $1,500 and was sold to the customer for $2,700 cash The customer was paid $2,700 cash for the returned merchandise 6 Delivered goods FOB destination in Event 4 Freight costs of $750 were paid in cash 7 Collected the amount due on the account receivable within the discount period 8 Sold the land for $4,700 9 Recognized accrued interest income of $550 10 Took a physical count indicating that $7,100 of inventory was on hand at the end of the accounting period c Post the beginning balances and the events to the T accounts Merchandise Inventory Cash Beg Bal Beg Bal End Bal End Bal Bal Interest Receivable Accounts Receivable Beg Bal Beg Bal End Bal End Bal Accounts Payable Land Beg Bal Bea Bal End Bal End Bal Retained Earnings Common Stock Beg Bal Beg Bal End Bal End Bal Sales Revenue Cost of Goods Sold Beg Bal Beg Bal Bal Bal Transportation out Interest Revenue Beg Bal Bea Bal Bal Ba Gain on Sale of Land Beg Bal Ball

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Posted on Sep 17, 2024

At the beginning of 2016, the Redd Company had the following balances in its accounts: Cash $16,800 Inventory 7,000 Land 2,600 Common stock 15,000 Retained

At the beginning of 2016, the Redd Company had the following balances in its accounts:


Cash	$16,800
Inventory	7,000
Land	2,600
Common stock	15,000
Retained earnings	11,400

During 2016, the company experienced the following events:

1.	Purchased inventory that cost $11,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $860 were paid in cash.
2.	Returned $750 of the inventory that 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.
4.	Sold inventory that had cost $9,500 for $15,500 on account, under terms 2/10, n/45.
5.	Received merchandise returned from a customer. The merchandise originally cost $1,500 and was sold to the customer for $2,700 cash. The customer was paid $2,700 cash for the returned merchandise.
6.	Delivered goods FOB destination in Event 4. Freight costs of $750 were paid in cash.
7.	Collected the amount due on the account receivable within the discount period.
8.	Sold the land for $4,700.
9.	Recognized accrued interest income of $550.
10.	Took a physical count indicating that $7,100 of inventory was on hand at the end of the accounting period.

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c. Post the beginning balances and the events to the T-accounts Merchandise Inventory Cash Beg. Bal Beg. Bal End. Bal End. Bal Bal Interest Receivable Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Accounts Payable Land Beg. Bal Bea. Bal End. Bal End. Bal Retained Earnings Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Sales Revenue Cost of Goods Sold Beg. Bal Beg. Bal Bal Bal Transportation-out Interest Revenue Beg. Bal Bea. Bal Bal Ba Gain on Sale of Land Beg. Bal Ball