LO 4-2 4-3,44 Problem 4-26A Comprehensive cycle problem: Perpetual system the beginning of 2016, the Redd Company had the following balances in its accounts S. Inventory 15.000 Land 7.000 Commons 15.000 Retained 13.900 During 2016, the company experienced the following event 1. Parchased inventory that cost $5,200 on account from Rows Company de terme 1/10 n/30. The merchandise was delivered FOB shipping points of 5190 were paid in cash 2. Returned 5400 of the inventory that it had purchased became the inventory was damaged in transit. The seller red to pay the return freight cost. 2. Paid the amount duo is account payable to Rost Company within the cash discount pe thod 4 Sold inventory that had cost 56,800 for 512.100 scout, anderers 10, 5. Received merchandise returned from a comer The mechaninigay.com 9900 and was sold to the customer for 51,680 cash. The customer was paid Ich for the end merchandise 6. Delivered goods Fou destination in Event Freight costs of 100 paid in cash 7. Collected the amount due on the controvable within the period X Sold the land for 38.500 9. Recognized acerued interest income of 5600 10. Took a physical count indicating that $13,000 of inventory was on hand at the end of the accounting period Required 2 Identify each of these events asset source (AS), (AU) change (AE). er claims exchange (CE) Also explain how each event would affect the financial statements by placing a + for increas,- for decrease or NA for not affected under sach of the compo. nents in the following statements model. Assume that the perpetual inventory method is 254 Chapter 4 When an event has more than one part, use letters to distinguish the effects of part. The first event is de sample Event Event No. Cash Bp - Net NA - NA A- NA OA Record the events in real journal format Open Inger-act and post the beginning balances and the events to the accounts d. Prepares multistepincott, a statement of changes in stockholdenequity, a bal and short and och flows c. Record and put the doning entries and perpute a post closing trial balance