The following information applies to the questions displayed below At the beginning of Year 2, the Redd Company had the following balances in its accounts Cash $ 16,800 Inventory 9,000 Land 3,900 Common stock 17,000 Retained earnings 12,700 During Year 2, the company experienced the following events Purchased inventory that cost $13,100 on account from Ross Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $990 were paid in cash Returned $900 of the inventory it had purchased from Ross Company because the inventory was damaged in transit The seller agreed to pay the return freight cost Paid the amount due on its account payable to Ross Company within the cash discount period Sold inventory that had cost $12,500 for $21,500 on account, under terms 2 10, n 45 Received merchandise returned from a customer The merchandise originally cost $2,150 and was sold to the customer for $3,000 cash The customer was paid $3,000 cash for the returned merchandise Delivered goods FOB destination in Event 4 Freight costs of $880 were paid in cash Collected the amount due on the account receivable within the discount period Sold the land for $7,300 Recognized accrued interest income of $650 (To record this entry, debit the asset account Interest Receivable (this account will be on the balance sheet in the asset section and does NOT get closed at year end) and credit the revenue account Interest Revenue (this account is a temporary revenue account recorded on the income statement that gets closed at year end) This entry will be discussed in future chapters and will NOT be tested on Test 2) Took a physical count indicating that $5,100 of inventory was on hand at the end of the accounting period ( Hint Determine the current balance in the inventory account before calculating the amount of the inventory write down ) d Prepare a multistep income statement, a statement of changes in stockholders equity, and a balance sheet for year 2 d Prepare a multistep income statement, a statement of changes in stockholders' equity, and a balance sheet for year 2 REDD COMPANY Income Statement For the Year Ended December 31, Year 2 0 Operating expenses 0 Nonoperating items $ 0 REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 Total stockholders' equity $ 0 REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets $ 0 Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0

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[The following information applies to the questions displayed below.] At the beginning of Year 2, the Redd Company had the following balances in its accounts:

[The following information applies to the questions displayed below.] At the beginning of Year 2, the Redd Company had the following balances in its accounts:


Cash	$	16,800
Inventory		9,000
Land		3,900
Common stock		17,000
Retained earnings		12,700

During Year 2, the company experienced the following events:

Purchased inventory that cost $13,100 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $990 were paid in cash.
Returned $900 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
Paid the amount due on its account payable to Ross Company within the cash discount period.
Sold inventory that had cost $12,500 for $21,500 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $2,150 and was sold to the customer for $3,000 cash. The customer was paid $3,000 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $880 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Sold the land for $7,300.
Recognized accrued interest income of $650. (To record this entry, debit the asset account Interest Receivable (this account will be on the balance sheet in the asset section and does NOT get closed at year end) and credit the revenue account Interest Revenue (this account is a temporary revenue account recorded on the income statement that gets closed at year end). This entry will be discussed in future chapters and will NOT be tested on Test 2).
Took a physical count indicating that $5,100 of inventory was on hand at the end of the accounting period. (Hint:Determine the current balance in the inventory account before calculating the amount of the inventory write down.)

d. Prepare a multistep income statement, a statement of changes in stockholders equity, and a balance sheet for year 2.

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d. Prepare a multistep income statement, a statement of changes in stockholders' equity, and a balance sheet for year 2. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 0 Operating expenses 0 Nonoperating items $ 0 REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 Total stockholders' equity $ 0 REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets $ 0 Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0