Powell Company began the 2016 accounting period with $19,800 cash, $61,800 inventory, $48,900 common stock, and $32,700 retained earnings. During 2016, Powell experienced the following events: 1. Sold merchandise costing $37,600 for $74,700 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $355 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,990 and were sold to Prentise for $3,840. 4. Granted Prentise a $1,000 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,400 cash from accounts receivable.

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.