Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
please make it so I can see the entire answer. thank you The following information applies to the questions displayed below) At the beginning of
please make it so I can see the entire answer. thank you The following information applies to the questions displayed below) At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Land Common stock Retained earnings $ 6,900 15,000 7,000 15.000 13,900 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 1/10, 1/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash 2. Returned $400 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Pald the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $6,800 for $12,100 on account, under terms 2/10, 1/45. 5. Received merchandise returned from a customer. The merchandise originally cost $900 and was sold to the customer for $1680 cash. The customer was paid $1,680 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash. 7. Collected the amount due on the account receivable within the discount period 8. Sold the land for $8,500 9. Recognized accrued interest income of $600. 10. Took a physical count indicating that $13,400 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 inventory write down) REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Net sales $ 9,800 Cost of goods sold (5.900) 3,900 Operating expenses Transportation-out 600 3,300 Nonoperating items $ 3,300 REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 Required information REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 $ 0 Total stockholders' equity REDD COMPANY Balance Sheet As of December 31, Year 2 Assets $ 0 Total assets Liabilities Stockholders' Equity Required information REDD COMPANY 14 Balance Sheet As of December 31, Year 2 Assets Total assets $ 0 Liabilities Stockholders' Equity s 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities es $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities 0 $ 0 Ending cash balance Journal entry worksheet Record entry to close all revenue, gain, and expense accounts to the retained earnings account. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal SH Draw Mart REDD COMPANY Post Closing Trial Balance December 31, Year 2 Account Titles Debit Credit Total
please make it so I can see the entire answer. thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started