At the beginning of 2018, the Redd Company had the following balances in its accounts Cash $ 8,300 Inventory 2,300 Common stock 7,800 Retained earnings 2,800 During 2018, the company experienced the following events Purchased inventory that cost $5,800 on account from Redd Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $530 were paid in cash Returned $300 of the inventory that it had purchased because the inventory was damaged in transit The seller agreed to pay the return freight cost Paid the amount due on its account payable to Redd Company within the cash discount period Sold inventory that had cost $6,300 for $9,300 on account, under terms 2 10, n 45 Received merchandise returned from a customer The merchandise originally cost $530 and was sold to the customer for $830 cash The customer was paid $830 cash for the returned merchandise Delivered goods FOB destination in Event 4 Freight costs of $630 were paid in cash Collected the amount due on the account receivable within the discount period Took a physical count indicating that $2,000 of inventory was on hand at the end of the accounting period c 1 Prepare a multistep income statement REDD COMPANY Income Statement For the Year Ended December 31, 2018 Operating expenses c 2 Prepare a statement of changes in stockholders equity REDD COMPANY Statement of Changes in Stockholders Equity For the Year Ended December 31, 2018 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders equity c 3 Prepare a balance sheet REDD COMPANY Balance Sheet As of December 31, 2018 Assets Total assets Liabilities Stockholders Equity Total stockholders equity Total liabilities and stockholders equity Prepare a statement of cash flows (Enter cash outflows as negative amounts ) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance

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Posted on Sep 16, 2024

At the beginning of 2018, the Redd Company had the following balances in its accounts:

During 2018, the company experienced the following events:

Purchased inventory that cost $5,800 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $530 were paid in cash.
Returned $300 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
Paid the amount due on its account payable to Redd Company within the cash discount period.
Sold inventory that had cost $6,300 for $9,300 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $530 and was sold to the customer for $830 cash. The customer was paid $830 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $630 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Took a physical count indicating that $2,000 of inventory was on hand at the end of the accounting period.

c-1. Prepare a multistep income statement.

c-2. Prepare a statement of changes in stockholders equity.

REDD COMPANY
Statement of Changes in Stockholders Equity
For the Year Ended December 31, 2018
Beginning common stock

Ending common stock
Beginning retained earnings

Ending retained earnings
Total stockholders equity

c-3. Prepare a balance sheet.

REDD COMPANY
Balance Sheet
As of December 31, 2018
Assets



Total assets
Liabilities
Stockholders Equity



Total stockholders equity
Total liabilities and stockholders equity

Prepare a statement of cash flows. (Enter cash outflows as negative amounts.)

REDD COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flows from operating activities




Net cash flow from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net change in cash

Ending cash balance