Powell Company began the Year 3 accounting period with $45,000 cash $91,000 inventory, $65,000 common stock and $71,000 retained earnings. During Year 3, Powell experienced the following events 1. Sold merchandise costing $60,500 for $104,500 on account to Prentice Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,200 cash. 3. Received returned goods from Prentise. The goods Cost Powell $4,500 and were sold to Prentise for $6,800. 4. Granted Prentise a $3,500 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $85,500 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? Complete this question by entering your answers in the tabs below. RA Reg 1 Raq B2 RegB3 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.) Event No. Assets Accounts Receivable POWELL COMPANY Financial Statements Model for Year 3 - Stockholders' Equity Income Statement Common - Inventory Net Retained Stock Revenue Earnings Expenses - Income 91,000 65.000 + 71,000 Statement of Cash Flowa Cash Ball 45,000 1a. 1b. 2 3a +1 + 1 + + + - 4. 5 Total 45,000 0 91,000 65,000 71,000 RA Req B1 > Powell Company began the Year 3 accounting period with $45,000 cash. $91000 inventory, $65,000 common stock and $71,000 retained earnings. During Year 3, Powell experienced the following events 1. Sold merchandise casting $60,500 for $104,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,200 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,500 and were sold to Prentise for $6,800. 4. Granted Prentise a $3,500 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $85,500 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? Complete this question by entering your answers in the tabs below. Raq A Reg 1 Raq B2 Reg 3 Reqc Why would Prentise agree to keep the damaged goods? (Select "Yes" if the item is a reason to agree, and "No if it is not ) Get goods at reduced cost Can the damaged goods Rupair the damaged goods Retain the damaged goods Powell Company began the Year 3 accounting period with $45,000 cash. $91000 Inventory, $65,000 common stock and $71,000 retained earnings. During Year 3, Powell experienced the following events 1. Sold merchandise casting $60,500 for $104,500 on account to Prentise Fumiture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,200 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,500 and were sold to Prentise for $6,800. 4. Granted Prentise a $2,500 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $85,500 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? Complete this question by entering your answers in the tabs below. RA Reg 1 Req B2 Reg 3 Reg Prepare a balance sheet for Powell Company. POWELL COMPANY Balance Sheet As of December 31, Year 3 Assets Total assets |Latitis Stockholders equity Total stockholders' equity Total liable and sockholders' equity $ Powell Company began the Year 3 accounting period with $45,000 cash. $94000 Inventory, $65,000 common stock and $71,000 retained earnings. During Year 3, Powell experienced the following events 1. Sold merchandise casting $60,500 for $104,500 on account to Prentise Fumiture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,200 cash. 3. Received returned goods from Prentice. The goods cost Powell $4,500 and were sold to Prentise for $6,800. 4. Granted Prentise a $2,500 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $85,500 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? Complete this question by entering your answers in the tabs below. ReqA Reg 1 Req B2 Reg 3 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 0 Nutcash flow from operating activities Cash flows from investing activities Cash flow from financing activities Nat change in cash 0 Ending cash balance $ 0