Powell Company began the Year 2 accounting period with $18,000 cash, $60,900 inventory, $49,700 common stock, and $29,200 retained earnings. During Year 2, Powell experienced the following events:

1. Sold merchandise that cost $37,200 for $75,700 on account to Prentise Furniture Store.

2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $320 cash.

3. Received returned goods from Prentise. The goods cost Powell $1,820 and were sold to Prentise for $3,930.

4. Granted Prentise a $1,190 allowance for damaged goods that Prentise agreed to keep.

5. Collected partial payment of $52,600 cash from accounts receivable.

Required b. Post the beginning balances and journal entries to the T-accounts. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Inventory Common Stock Beg. Bal Beg. Bal 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 Prepare a multistep income statement. POWELL COMPANY Income Statement For the Year Ended December 31, Year 2 0 Operating expenses $ 0 Prepare a balance sheet. POWELL COMPANY Balance Sheet As of December 31, Year 2 Assets EA 0 Total assets Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Prepare an statement of cash flows. (Cash outflows should be indicated with a minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: $ Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0