Event Bal Event [The following information applies to the questions displayed below] At the beginning of Year 2, the Redd Company had the following balances in its accounts: Bal 1a. 1b. 2 3. 4a 4b 5a 5b. 6 7 8 Bal Cash Inventory Common stock Retained earnings b. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) During Year 2, the company experienced the following events 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $470 were paid in cash. 2. Returned $400 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 $5,700 for $8,700 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $470 and was sold to the customer for $770 cash. The customer was paid $770 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $570 were paid in cash 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $1,400 of inventory was on hand at the end of the accounting period Cash 7,700+ Cash 7.700+ + (470)+ + + (7.700)+ 570+ 8,541+ S 8,171 b. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) + Assets Accounts Merchandise Receivable Inventory 1,700 Assets Accounts Receivable $7,700 1,700 7,200 2,200 + + (470)+= S + + + Balance Sheet + 0+ $ Merchandise Inventory 1,700 Balance Sheet = 1,700 Liabilities Accounts Payable REDD COMPANY Horizontal Statements Model - Year 2 $ Stockholders' Equity Common Retained Revenue Stock Earnings 2,200 7.200+ REDD COMPANY Horizontal Statements Model - Year 2 Liabilities Stockholders' Equity Accounts Payable + + Common Retained Revenue Stock Earnings 7,200+ 2,200 +1 + 0+ $ 7,200+ $ 2,200 $ Income Statement Expenses 0 Income Statement Expenses- S Net Income = Net Income Statement of Cash Flows 0 S Statement of Cash Flows 0$ 0

During Voar 2 , the company erperienced the followng wects. to pary the ietam freght cent and cosh outlows with o minus sign! ond cosh outflows with o minus sign