Powell Company began the Year 3 accounting period with $30,000 cash, $96,000 inventory, $70,000 common stock, and $56,000 retained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $63,000 for $109,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Transportation costs were $600 cash 3. Received returned goods from Prentise. The goods cost Powell $5,000 and were sold to Prentise for $6,800. 4. Granted Prentise a $4,000 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $90,500 cash from accounts receivable Required a. Record the events in a horizontal financial statements model b. Prepare an income statement, a balance sheet, and a statement of cash flows Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 1 Record the events in a horizontal financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for inve activity and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement d an input leave cells blank if there is no corresponding input needed.) Assets Event No. Accounts Cash Receivable Inventory Bal 30,000+ + 96,000 1a 1b + POWELL COMPANY Financial Statements Model for Year 3 Stockholders' Equity Common Retained Stock Income Statement Revenue- Expenses Earnings Net Income Statement of Cash Flows 70,000+ 56,000 < Prev 22 of 23 Next > Complete this question by entering your answers in the tabs below. 20 Req A Req B1 Req B2 Req B3 Record the events in a horizontal financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA fe activity and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "State an input - leave cells blank if there is no corresponding input needed.) POWELL COMPANY Financial Statements Model for Year 3 Stockholders' Equity Assets Income Statement Event No. Cash Accounts Receivable +Inventory Common Stock Retained Net Statement of Cash Flows Revenue Expenses Earnings Income Bal 30,000+ 96,000 = 70,000+ 56,000 1a 1b. 2 3a 3b 4 + + . + = = + 4 = Total 5 + 30,000 0+ 96,000 70,000+ 56,000 0= Req B1 > 22 Complete this question by entering your answers in the tabs bel 00:58:14 Req A Req B1 Req B2 Req B3 Prepare a income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 Operating expenses 69 0 0 < Req A Rec Complete this question by entering your answers in the tabs below. 00:58:06 Req A Req B1 Req B2 Req B3 Prepare a balance sheet for Powell Company. POWELL COMPANY Balance Sheet As of December 31, Year 3 Assets: Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity SA $ POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance 0 0 < Req B2 Ret Ba