Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims oxchange (CE). Also explain how oach ovent would affect the finandal statemonts by placing a + for increase, - for decrease, and +1 -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 oxample. (In the Statement of Cash Flows column, use the initials OA to designate operating activity. IA for Investing activity, and FA for financing activity.) Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.) c. Post the beginning balances and the events to the I-accounts. Note that these ledger accounts will also be used when posting th closing entry that is created in Part e. 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 ledger accounts and prepare a post-closing trial balance. 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 used when posting the closing entry that is created in part e. At the beginning of Year 2 , the Redd Company had the following balances in its accounts. During Year 2 , the company experienced the following everits: 1. Purchased inventory that cost $12,000 on account from Ross Company under terms 2/10,n/30. The merchandise was delivered FOB shipping point. Freight costs of $880 were paid in cash. 2. Returned $850 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 $8,500 for $16,500 on account, under terms 2/10, n/45. 5. Recelved merchandise refumed from a customet. The merchandise originally cost $1,600 and was sold to the customer for $2,900 cash. The customer was paid $2,900 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4 . Freight costs of $770 were paid in cash 7. Collected the amount due on the account receivable within the discount period 8. Sold the land for $5,100 9. Recognized accrued interest income of $650 10. Took a physical count indicating that $7,300 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 imventory write down. Required: D. Identify each of these events as asset source (AS), asset use (NU), asset exchange (AE), or claims exchange (CE). Also explain how each event would affect the financial statements by placing a + for increase, - for decrease, and +i 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 distingulsh the effects of each part. The first event is recorded as an exampie. b. Becord the events in general journal format. Assume that the perpetual inventory method and gross method is used c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Parte d. Prepare a multsistep income statement, a statement of changes in stockhoiders equity, a balance sheet, and a statement of cash flows for Year 2 -. Use a single general journal entry to close al reverwe, gain, and experise accounts to the retained earnings account, Post the joumal entry to the ledger accounts and prepare a post-closing trial bolance. d. Prepare a multistep income statement, a statement of changes in stockholder's flows for Year 2. e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account P journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Prepare a balance sheet for Year 2 . 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 balance. 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. (If no entry is required for a transaction/event, sefect "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. Complete this question by entering your answers in the tabs below. Prepare a multistep income statement for Year 2. Journal entry worksheet Record entry to close all revenue, gain, and expense accounts to the retained earnings account. Note: Enter debits belore credits: under each of the components in the following statements model event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an ex b. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used wh 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 staten flows for Year 2. e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retained earnings account journal entry to the ledger accounts and prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Prepare a statement of changes in stockholders' equity for year 2