I started it and I'm stuck At the beginning of Year 2, the Redd Company had the following balances in its accounts Cash $ 8,800 Inventory 2,800 Common stock 8,300 Retained earnings 3,300 During Year 2, the company experienced the following events Purchased inventory that cost $6,300 on account from Ross Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $580 were paid in cash 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 Paid the amount due on its account payable to Ross Company within the cash discount period Sold inventory that had cost $6,800 for $9,800 on account, under terms 2 10, n 45 Received merchandise returned from a customer The merchandise originally cost $580 and was sold to the customer for $880 cash The customer was paid $880 cash for the returned merchandise Delivered goods FOB destination in Event 4 Freight costs of $680 were paid in cash Collected the amount due on the account receivable within the discount period Took a physical count indicating that $2,500 of inventory was on hand at the end of the accounting period Problem 3 26A (Algo) Part c c 1 Prepare a multistep income statement c 2 Prepare a statement of changes in stockholders equity c 3 Prepare a balance sheet c 4 Prepare a statement of cash flows REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Net sales Cost of goods sold Gross margin Operating expenses Transportation out 680 Net income REDD COMPANY Statement of Changes in Stockholders Equity For the Year Ended December 31, Year 2 Beginning common stock Ending common stock $0 Beginning retained earnings Ending retained earnings 0 Total stockholders equity $0 REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets $0 Liabilities Stockholders Equity Total stockholders equity $0 Total liabilities and stockholders equity $0 REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Net cash flow from operating activities $0 Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $0

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Posted on Jun 01, 2024

I started it and I'm stuck!

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:

Purchased inventory that cost $6,300 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $580 were paid in cash.
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.
Paid the amount due on its account payable to Ross Company within the cash discount period.
Sold inventory that had cost $6,800 for $9,800 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $580 and was sold to the customer for $880 cash. The customer was paid $880 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $680 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Took a physical count indicating that $2,500 of inventory was on hand at the end of the accounting period.

Problem 3-26A (Algo) Part c

REDD COMPANY
Income Statement
For the Year Ended December 31, Year 2
Net sales
Cost of goods sold
Gross margin
Operating expenses
Transportation-out	680
Net income

REDD COMPANY
Statement of Changes in Stockholders Equity
For the Year Ended December 31, Year 2
Beginning common stock

Ending common stock		$0
Beginning retained earnings

Ending retained earnings		0
Total stockholders equity		$0

REDD COMPANY
Balance Sheet
As of December 31, Year 2
Assets



Total assets		$0
Liabilities
Stockholders Equity



Total stockholders equity		$0
Total liabilities and stockholders equity		$0

REDD COMPANY
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities




Net cash flow from operating activities		$0
Cash flows from investing activities:
Cash flows from financing activities:
Net change in cash		0

Ending cash balance		$0