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 $12,700 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $950 were paid in cash. 2. Returned $700 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 4. Sold inventory that had cost $10,000 for $19,000 on account, under terms 2/10,n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,950 and was sold to the customer for $2,600 cash The customer was paid $2,600 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $840 were paid in cash. 7. Collected the amount due on the account recelvable within the discount period. 8. Sold the land for $6.500. 9. Recognized accrued interest income of $450 10. Took a plysical count indicating that $4,600 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: 0. Identfy each of these events as asset source (AS), asset use (AU), osset exchange (AE), or claims exchange (CE). Also explain how each event would affect the financial statements by placing a + for increase, for decrease, and +j - 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 perpetusl inventory method and gross method is used. c. Post the beganing balances and the events to the Taccounts. Note that these ledger accounts wil 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 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 iedger accounts and prepare a post-closing trial balance. the financial itatements by pacing a + for increate. - for darase, and +j - for horelse and deurease under each of the compentrty in the foleming investing actlyity. and fis fuc fifaroding acthity.) Complete this question by entering your answers in the tabs below. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for inventory purchased on account from Ross company under terms 1/10,n/30. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be use: clncinn entrv that is created in Part e. ssignment - Chapter 4 i Retained Earnings Complete this question by entering your answers in the ta Prepare a multistep income statement for Year 2. Prepare a statement of changes in stockholders' equity for Year 2. journal entry to the ledger accounts and prepare a post-closing tral daldice. Complete this question by entering your answers in the tabs below. Prepare a balance sheet for Year 2. Prepare a statement of cash flows for Year 2. (Cash outflows should be indicated with Journal entry worksheet Record entry to close all revenue, gain, and expense accounts to the retained earnings account. Note: Enter debits before credits. journal entry to the ledger accounts and prepare a Complete this question by entering your answers in the tabs below. post the journal entry to the ledger accounts and prepare a post-closing trial bala 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 $12,700 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $950 were paid in cash. 2. Returned $700 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 4. Sold inventory that had cost $10,000 for $19,000 on account, under terms 2/10,n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,950 and was sold to the customer for $2,600 cash The customer was paid $2,600 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $840 were paid in cash. 7. Collected the amount due on the account recelvable within the discount period. 8. Sold the land for $6.500. 9. Recognized accrued interest income of $450 10. Took a plysical count indicating that $4,600 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: 0. Identfy each of these events as asset source (AS), asset use (AU), osset exchange (AE), or claims exchange (CE). Also explain how each event would affect the financial statements by placing a + for increase, for decrease, and +j - 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 perpetusl inventory method and gross method is used. c. Post the beganing balances and the events to the Taccounts. Note that these ledger accounts wil 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 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 iedger accounts and prepare a post-closing trial balance. the financial itatements by pacing a + for increate. - for darase, and +j - for horelse and deurease under each of the compentrty in the foleming investing actlyity. and fis fuc fifaroding acthity.) Complete this question by entering your answers in the tabs below. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for inventory purchased on account from Ross company under terms 1/10,n/30. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be use: clncinn entrv that is created in Part e. ssignment - Chapter 4 i Retained Earnings Complete this question by entering your answers in the ta Prepare a multistep income statement for Year 2. Prepare a statement of changes in stockholders' equity for Year 2. journal entry to the ledger accounts and prepare a post-closing tral daldice. Complete this question by entering your answers in the tabs below. Prepare a balance sheet for Year 2. Prepare a statement of cash flows for Year 2. (Cash outflows should be indicated with Journal entry worksheet Record entry to close all revenue, gain, and expense accounts to the retained earnings account. Note: Enter debits before credits. journal entry to the ledger accounts and prepare a Complete this question by entering your answers in the tabs below. post the journal entry to the ledger accounts and prepare a post-closing trial bala