File Edit View History Bookmarks Profiles Tab Window Help m Question 11 - Chapter 4 Home x + v 9 C' i ezto.mheducation.com/extlmaplindex.html?_con=con&external_browser=0&launchUr|=https%253A%252F%252Fnewconnect.mheducation.com... Q [I] 131' (5 I] ' Chapter 4 Homework 0 Saved Nelp Save 5 Exit Submit w 11 Part 2 oi 4 [The fol/owing information app/ies to the questions displayed below. ] Required information At the beginning of Year 2, the Redd Company had the following balances in its accounts: 7.69 PM\" Cash $23, 300 Inventory 4 , 500 Skiwed Land 3 , 000 common stock 19, 000 Retained earnings 11,500 eEnok During Year 2, the company experienced the following events: :5: 1. Purchased inventory that cost $12,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOE shipping point. Freight costs of $900 were paid in cash. 2. Returned $950 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. Re'emces 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $9,000 ior $17,000 on account, under terms 2/10, n/45. 5. 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. 6. Delivered goods FOB destination in Event 4. Freight costs of $790 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,500. 9. 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 $3,600 of inventory was on hand at the end ofthe accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount oithe inventory write down.) c. Post the beginning balances and the events to the Taccounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Parte, ca ( Prey 11 I2 13 qa-B 424 Wigwam; I. - $ ' I y , moo Chrome File Edit View History Bookmarks Profiles Tab Window Help G Q Sun Oct 1 11:31 PM M Question 11 - Chapter 4 Homev 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 Check my work 11 c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Part e. Part 2 of 4 Cash Merchandise Inventory Beg. Bal Beg. Bal 7.69 points Skipped End. Ba End. Bal Bal Book Print Accounts Receivable Interest Receivable Beg. Bal Beg. Bal References End. Bal End. Bal Land Accounts Payable Beg. Bal Beg. Bal End. Ba End. Ba Common Stock Retained Earnings Beg. Bal Beg. Bal Hill 1.729 A * 1Chrome File Edit View History Bookmarks Profiles Tab Window Help G Q Sun Oct 1 11:31 PM M Question 11 - Chapter 4 Homev X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... @ 9Update Chapter 4 Homework i Saved Help Save & Exit Submit Check my work 11 Required information Part 2 of 4 End. Ba End. Bal Common Stock 7.69 Retained Earnings points Beg. Bal Beg. Bal Skipped End. Bal End . Bal Book Sales Revenue Cost of Goods Sold Beg. Bal Beg. Bal Print References Bal Transportation-out Interest Revenue Beg. Bal Beg. Bal Bal Bal Gain on Sale of Land Beg. Bal Bal O