in the beginning of 2018, 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 2018, 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 T he seller agreed to pay the return freight cost Paid the amount due on its account payable to Redd 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 T he 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 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 ) 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 a c Show the effects of the following transactions on the financial statements in the horizontal statements model (a) Recognize the NSF check, (c) Customer redeems the check by giving Hans $340 cash in exchange for the bad check The additional $20 was a service fee charged by Hans In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity If the element is not affected by the event, leave the cell blank (Enter any decreases to account balances and cash outflows with a minus sign )

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in the beginning of 2018, the Redd Company had the following balances in its accounts: Cash $ 8,800 Inventory 2,800 Common stock 8,300 Retained earnings

in the beginning of 2018, 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 2018, 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. T

he seller agreed to pay the return freight cost. Paid the amount due on its account payable to Redd 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. T

he 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.

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.)
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

a. & c. Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check, (c) Customer redeems the check by giving Hans $340 cash in exchange for the bad check. The additional $20 was a service fee charged by Hans. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. If the element is not affected by the event, leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign.)