6 Chrome File Edit View History Bookmarks Profiles Tab Window Help 6 EM (9 I ? Q 2 - SunOct111129PM .177. m Question 12-Chapter4Home x + v 6 9 C & ezto.mheducation.com/ext/map/index.html?_con=con&externaI_browser=0&|aunchUr|=https%253A%252F%252Fnewconnect.mheducation.com... Q [I] i} (9 El _ Chapter4 Homework 0 Saved Help Saves Exit Submit 12 Part 3 oi 4 [T he fol/owing information applies to the questions disp/ayed below] Required information At the beginning of Year 2, the Redd Company had the following balances in its accounts: 769 \"W\" Cash $23,3n0 Inventory 4,500 Land 3, one Common scock 19 , 000 E Retained earnings 11,300 eBook During Vear 2. the company experienced the following events: 1. Purchased inventory that cost $12,200 on account from Ross Company under terms 2/10, n/30. The merchandise was E delivered FOB shipping point. Freight costs of $900 were paid in cash. Re'e'er'c\" 2. Returned $950 ofthe 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 $9,000 for $17,000 on account. under terms 2/10. n/45. . Received merchandise returned from a customer. The merchandise originally cost $1,700 and was sold to the customer for $2.100 cash. The customer was paid $2,100 cash for the returned merchandise. . Delivered goods FOB destination in Event 4. Freight costs of $790 were paid in cash. . Collected the amount due on the account receivable within the discount period. . Sold the land for $5,500. . Recognized accrued interest income of $750. (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). 10. Took a physical count indicating that $33,600 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account beiore calculating the amount of the inventory write down.) new condos d. Prepare a multistep income statement, a statement of changes in stockholders equity, and a balance sheet for year 2. a) 12 13 424 1.729 E; l i - i a 7. , ~ I moo Chrome File Edit View History Bookmarks Profiles Tab Window Help G Q 8 Sun Oct 1 11:29 PM M Question 12 - Chapter 4 Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... . * Update : Chapter 4 Homework i Saved Help Save & Exit Submit 19 PM Check my work 12 d. Prepare a multistep income statement, a statement of changes in stockholders' equity, and a balance sheet for year 2. REDD COMPANY Income Statement Part 3 of 4 For the Year Ended December 31, Year 2 7.69 points Operating expenses Book Nonoperating items Print In References REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 O Total stockholders' equity $ 0 Mc Grav 1,729 4 * 1 OChrome File Edit View History Bookmarks Profiles Tab Window Help G Q 8 Sun Oct 1 11:30 PM M Question 12 - Chapter 4 Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... @ * Update : Chapter 4 Homework i Saved Help Save & Exit Submit 19 PM Check my work 12 Required information 6 PM Part 3 of 4 Total stockholders' equity $ 7.69 points Book REDD COMPANY Balance Sheet Print As of December 31, Year 2 Assets References Total assets $ Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ Grav 4 * 1 O