Please see below under "Requirements" for the questions that need to be answered.I have answered most of it, but some of my answers are wrong according to MC Graw site.
Powell Company began the 2018 accounting period with $46,000 cash, $92,000 inventory, $66,000 common stock, and $72,000 retained earnings. During 2018, Powell experienced the following events: 1. Sold merchandise costing $61,000 for $105,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $800 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,600 and were sold to Prentise for $6,000. 4. Granted Prentise a $3,600 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $86,500 cash from accounts receivable. Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Reg B3 Reqc Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and for no affect, leave the cell blank. Not every cell will require entry.) Event No. Cash Accounts Net Statement of Cash Flows cash 46,000 + Bal. 1a. + + POWELL COMPANY Financial Statements Model for 2018 Assets - Stockholders' Equity Income Statement Common. Retained + Inventory = 9 Receivable * ventory - Stock Earnings Revenue - Expenses - 92,000 = 66,000 + 72,000 105,500 105,500 105,500 (61,000) = (61,000) 61,000/= + (800) - 800 = (6,000) + (6,000)| (6,000) 4.600 4,600 - (4.600) = (3,600)| + (3,600)| (3,600) = (86,500) + 9,400 + 35,600 = 66,000 + 110,700 95,900 - (800) OA (800) + + 2. 3a. 3b. 4. 5. Total 105,500 (61.000) (800)| (6,000) 4,600 (3.600) + 86,500 + 131,700 + 86,500 OA 85,700 NC 38,700 Complete this question by entering your answers in the tabs below. Reg A Reg B1 Reg B2 Req B3 Reqc Prepare an income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, 2018 Net sales $ 95,900 Cost of goods sold 56,400 Gross margin 39,500 Operating expenses Transportation-out Net income | $ 38,700 800 Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Req B3 Reqc Prepare a statement of cash flows for Powell Company. (Amounts to be deducted should be indicated with minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flow from operating activities Cash outflow for expenses (800) Cash inflow from customers 86,500 $ 85,700 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 85,700 46,000 131,700 $ Powell Company began the 2018 accounting period with $46,000 cash, $92,000 inventory, $66,000 common stock, and $72,000 retained earnings. During 2018, Powell experienced the following events: 1. Sold merchandise costing $61,000 for $105,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $800 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,600 and were sold to Prentise for $6,000. 4. Granted Prentise a $3,600 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $86,500 cash from accounts receivable. Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Reg B3 Reqc Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and for no affect, leave the cell blank. Not every cell will require entry.) Event No. Cash Accounts Net Statement of Cash Flows cash 46,000 + Bal. 1a. + + POWELL COMPANY Financial Statements Model for 2018 Assets - Stockholders' Equity Income Statement Common. Retained + Inventory = 9 Receivable * ventory - Stock Earnings Revenue - Expenses - 92,000 = 66,000 + 72,000 105,500 105,500 105,500 (61,000) = (61,000) 61,000/= + (800) - 800 = (6,000) + (6,000)| (6,000) 4.600 4,600 - (4.600) = (3,600)| + (3,600)| (3,600) = (86,500) + 9,400 + 35,600 = 66,000 + 110,700 95,900 - (800) OA (800) + + 2. 3a. 3b. 4. 5. Total 105,500 (61.000) (800)| (6,000) 4,600 (3.600) + 86,500 + 131,700 + 86,500 OA 85,700 NC 38,700 Complete this question by entering your answers in the tabs below. Reg A Reg B1 Reg B2 Req B3 Reqc Prepare an income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, 2018 Net sales $ 95,900 Cost of goods sold 56,400 Gross margin 39,500 Operating expenses Transportation-out Net income | $ 38,700 800 Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Req B3 Reqc Prepare a statement of cash flows for Powell Company. (Amounts to be deducted should be indicated with minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flow from operating activities Cash outflow for expenses (800) Cash inflow from customers 86,500 $ 85,700 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 85,700 46,000 131,700 $
