Chapter 4 Homework i Saved Exercise 4-16A Effect of sales returns and allowances and freight costs on the financial statements: Perpetual system LO 4-2, 4-4, 4-7 11.11 points Powell Company began the Year 3 accounting period with $30,000 cash, $96,000 inventory, $70,000 common stock, and $56,000 retained earnings. During Year 3, Powell experienced the following events: eBook handise costing $63,000 for $109,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $600 cash. 3. Received returned goods from Prentise. The goods cost Powell $5,000 and were sold to Prentise for $6,800. 4. Granted Prentise a $4,000 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $90,500 cash from accounts receivable. Hint Print Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? References Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C Prepare an income statement for Powell Company. 00 5. Collected partial payment of $90,500 cash from accounts receivable. 11.11 Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? points Complete this question by entering your answers in the tabs below. eBook Required A Required B1 Required B2 Required B3 Required Hint Prepare an income statement for Powell Company. Print POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 References Net sales Cost of goods sold Gross margin Operating expenses Transportation-out Net income $ Required A Required B2 > Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? 001 11.11 points Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C eBook Prepare a balance sheet for Powell Company. Hint POWELL COMPANY Balance Sheet As of December 31, Year 3 Print Assets References Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity Required B1 Required B3 > 00 a Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? 11.11 points Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required C eBook Prepare a statement of cash flows for Powell Company. (Amounts to be deducted should be indicated with minus sign.) Hint POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Print Cash flow from operating activities References Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance $ 0 Chapter 4 Homework i Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? 11.11 points Complete this question by entering your answers in the tabs below. eBook Required A Required B1 Required B2 Required B3 Required C Why would Prentise agree to keep the damaged goods? (Select which of the following statements (is) are true by selecting an Hint "X" ) Print Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Retain the damaged goods. References Required B3 Required C )
