At the beginning of Year 2, the Redd Company had the following balances in its accounts.

Cash	$17,300
Inventory	7,500
Land	2,700
Common stock	16,000
Retained earnings	11,500

During Year 2, the company experienced the following events:

1. Purchased inventory that cost $11,900 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $870 were paid in cash the responsible party.
2. Returned $800 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 $8,000 for $16,000 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $1,550 and was sold to the customer for $2,800 cash. The customer was paid $2,800 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $760 were paid in cash by the responsible party.
7. Collected the amount due on the account receivable within the discount period.
8. Sold the land for $4,900.
9. Recognized accrued interest income of $600.
10. Took a physical count indicating that $7,200 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:

1. Prepare a multistep income statement, a statement of changes in stockholders equity, and a balance sheet for Year 2.
2. 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.

please answer part a and b thank you!