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Powell Company began the Year $3$ accounting period with $$43,000$ cash, $$89,000$ inventory, $$63,000$ common stock, and $$69,000$ retained earnings. During Year $3,$ Powell experienced the following events:

Sold merchandise costing $$59,500$ for $$102,500$ on account to Prentise Furniture Store.

Delivered the goods to Prentise under terms FOB destination. Transportation costs were $$1,000$ cash.

Granted Prentised goods from Prentise. The goods cost Powell $$4,300$ and were sold to Prentise for $$5,400$

Collected partial payment of $$83,500$ for damaged goods that Prentise agreed to keep

Required:

a$.$ Record the events in a horizontal financial statements model.

b$.$ Prepare an income statement, a balance sheet, and a statement of cash flows.

Complete this question by entering your answers in the tabs below.

Req A

Req B$1$

Req B$2$

Req B$3$

Record the events in a horizontal financial statements model.