Powell Company began the 2016 accounting period with $19,100 cash, $60,800 inventory, $48,800 common stock, and $31,100 retained earnings During 2016, Powell experienced the following events 1 Sold merchandise costing $36,200 for $76,000 on account to Prentise Furniture Store 2 Delivered the goods to Prentise under terms FOB destination Freight costs were $365 cash 3 Received returned goods from Prentise The goods cost Powell $1,940 and were sold to Prentise for $3,960 4 Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep 5 Collected partial payment of $52,500 cash from accounts receivable Required a Record the events in general journal format b Open general ledger T accounts with the appropriate beginning balances and post the journal entries to the T accounts c Prepare an income statement, balance sheet, and statement of cash flows d Why would Prentise agree to keep the damaged goods Required a Record the events in general journal format (If no entry is required for a transaction event, select No journal entry required in the first account field ) view transaction list view general journal Journal Entry Worksheet 1 2 3 4 5 6 Sold merchandise for $76,000 on account to Prentise Furniture Store General Journal Debit Credit Date 1a Enter debits before credits done clear entry record entry

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Powell Company began the 2016 accounting period with $19,100 cash, $60,800 inventory, $48,800 common stock, and $31,100 retained earnings. During 2016, Powell experienced the following

Powell Company began the 2016 accounting period with $19,100 cash, $60,800 inventory, $48,800 common stock, and $31,100 retained earnings. During 2016, Powell experienced the following events: 1. Sold merchandise costing $36,200 for $76,000 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $365 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,940 and were sold to Prentise for $3,960. 4. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,500 cash from accounts receivable. Required

a. Record the events in general journal format. image text in transcribed

b. Open general ledger T-accounts with the appropriate beginning balances and post the journal entries to the T-accounts.

image text in transcribed

c. Prepare an income statement, balance sheet, and statement of cash flows. d. Why would Prentise agree to keep the damaged goods?

image text in transcribed

Required a. Record the events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 1 2 3 4 5 6 Sold merchandise for $76,000 on account to Prentise Furniture Store. General Journal Debit Credit Date 1a. *Enter debits before credits done clear entry record entry