Powell Company began the Year 3 accounting period with $41,000 cash, $87,000 Inventory, $61,000 common stock. and $67,000 retained earnings. During Year 3. Powell experienced the following events: 1. Sold merchandise costing $58,500 for $100,500 on account to Prentise Fumiture 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 $4,100 and were sold to Prentise for $6,000. 4. Granted Prentise a $3,100 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $81,500 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? Answer is not complete. Complete this question by entering your answers in the tabs below. = Reg A Req B1 Reg B2 Req 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, or NC for net change in cash. If the account is not affected by the event, leave the cell blank. Not every cell will require entry.) Show less POWELL COMPANY Financial Statements Model for Year 3 Event Assets Stockholders' Equity Income Statement Sta No. Cash Accounts Common Retained Net Receivable Inventory Revenue Stock Earnings Expenses Income Bal 41,000 87,000 61,000 67,000 1a. 100,500 100,500 100,500 100,500 1b. (58,500) 58500 (58,500 2. (800) + (800) 800 (800) . (600 X + (6,000 (6.00017 (6.000 3b. 4,100 4,100 (4.100 4. (3,100T (3,100 (3,1001 (3,100 5. 81,500+ (81,500+ 81 Total 121,700 15,300 91,100 61,000 103,200 91,400 55,200 36,200 80, + + + + + = + = + = + = + + + = + + = = + = = + + + = 4,100 + + = + = + = + + = ReqA Req B1 > Powell Company began the Year 3 accounting period with $41,000 cash, $87,000 Inventory. $61,000 common stock. and $67,000 retained eamings. During Year 3. Powell experienced the following events: 1. Sold merchandise costing $58,500 for $100,500 on account to Prentise Fumiture 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 $4,100 and were sold to Prentise for $6,000. 4. Granted Prentise a $3,100 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $81,500 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Req B1 Req B2 Req B3 Reqc Prepare an income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 Net sales Cost of goods sold 54.400 Gross margin 37.000 Operating expenses Interest expense x 800 Net income 36.200 91.4000 ( Req A Req B2 > Powell Company began the Year 3 accounting period with $41,000 cash, $87,000 Inventory. $61,000 common stock. and $67,000 retained eamings. During Year 3. Powell experienced the following events: 1. Sold merchandise costing $58,500 for $100,500 on account to Prentise Fumiture 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 $4,100 and were sold to Prentise for $6,000. 4. Granted Prentise a $3,100 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $81,500 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Req B1 Req B2 Req B3 ReqC Prepare a balance sheet for Powell Company. POWELL COMPANY Balance Sheet As of December 31, Year 3 Assets Cash 121,700 Accounts receivable 9,900 Merchandise inventory 32,600 $ 164,200 10 Total assets Liabilities Stockholders' equity Common stock Utilities expense $61,000 x 103,200 Total stockholders' equity Total liabilities and stockholders' equity 164,200 $ 164,200 Powell Company began the Year 3 accounting period with $41,000 cash, $87,000 Inventory. $61,000 common stock. and $67,000 retained eamings. During Year 3. Powell experienced the following events: 1. Sold merchandise costing $58,500 for $100,500 on account to Prentise Fumiture 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 $4,100 and were sold to Prentise for $6,000. 4. Granted Prentise a $3.100 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $81,500 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 ReqC Prepare a statement of cash flows for Powell Company. (Cash outflows should be indicated with a minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flow from operating activities 81,500 800x $82,300 Net cash flow from operating activities Cash flows from investing activities: ows om financing activities: Net change in cash Plus: Beginning cash balance Ending cash balance 82,300 41,000 $ 123,300 Req B2 Reqc >