NEED ALL PARTS COMPLETE THANKS!!!
FIRST QUESTION:
SECOND QUESTION (MUTLIPLE PARTS):
Required information Exercise 4-16A Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2,4-4, 4-7 (The following information applies to the questions displayed below. Powell Company began the Year 2 accounting period with $19,700 cash, $60,400 inventory, $48,400 common stock, and $31,700 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,900 for $76,300 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $300 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,950 and were sold to Prentise for $3,830. 4. Granted Prentise a $1,060 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $53,700 cash from accounts receivable. Accounts Receivable Cash 19,700 Beg. Bal 4. 1b. 4. Beg. Bal 3a. 3b. 5. 5. End. Bal 19,700 End. Bal Merchandise Inventory Common Stock Beg. Bal Beg. Bal 1a. 1b. End. Bal End. Bal Retained Earnings Sales Revenue Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Transportation-out Beg. Bal Beg. Bal End. Bal End. Bal Exercise 4-16A Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-7 [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $19,700 cash, $60,400 inventory, $48,400 common stock, and $31,700 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,900 for $76,300 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $300 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,950 and were sold to Prentise for $3,830. 4. Granted Prentise a $1,060 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $53,700 cash from accounts receivable. c. Prepare an income statement, balance sheet, and statement of cash flows. (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.) POWELL COMPANY Income Statement For the Year Ended December 31, Year 2 Net sales Cost of goods sold Gross margin Operating expenses Transportation-out Net income 0 $ POWELL COMPANY Balance Sheet As of December 31, Year 2 Assets Cash Accounts receivable Merchandise inventory $ 0 Total assets Liabilities Stockholders' Equity Common stock Retained earnings 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for expenses $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 $ 0
