I started it but I'm stuck Please help At the beginning of Year 2, the Redd Company had the following balances in its accounts Cash $ 8,800 Inventory 2,800 Common stock 8,300 Retained earnings 3,300 During Year 2, the company experienced the following events Purchased inventory that cost $6,300 on account from Ross Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $580 were paid in cash Returned $400 of the inventory that it had purchased 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 $6,800 for $9,800 on account, under terms 2 10, n 45 Received merchandise returned from a customer The merchandise originally cost $580 and was sold to the customer for $880 cash The customer was paid $880 cash for the returned merchandise Delivered goods FOB destination in Event 4 Freight costs of $680 were paid in cash Collected the amount due on the account receivable within the discount period Took a physical count indicating that $2,500 of inventory was on hand at the end of the accounting period Problem 3 26A (Algo) Part b Record each event in a statements model like the following one In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash If the element is not affected by the event, leave the cell blank The first event is recorded as an example (Not every cell will require entry Enter any decreases to account balances and cash outflows with a minus sign ) REDD COMPANY Horizontal Statements Model Year 2 Event Balance Sheet Income Statement Statement of Cash Flows Assets Liabilities Stockholders Equity Revenue Expenses Net Income Cash Accounts Receivable Merchandise Inventory Accounts Payable Common Stock Retained Earnings Bal 8,800 2,800 8,300 3,300 1a 6,300 6,300 1b (580) 580 OA 2 (400) (400) 3 (5,900) OA 4a 4b 5a OA 5b 6 OA 7 OA 8 Bal $8,220 $0 $9,280 $0 $8,300 $3,300 $0 $0 $0 $0 NC

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Question: I started it but I'm stuck!! Please help! At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash

I started it but I'm stuck!! Please help!

At the beginning of Year 2, the Redd Company had the following balances in its accounts:


Cash	$	8,800
Inventory		2,800
Common stock		8,300
Retained earnings		3,300

During Year 2, the company experienced the following events:

Purchased inventory that cost $6,300 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $580 were paid in cash.
Returned $400 of the inventory that it had purchased 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 $6,800 for $9,800 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $580 and was sold to the customer for $880 cash. The customer was paid $880 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $680 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Took a physical count indicating that $2,500 of inventory was on hand at the end of the accounting period.

Problem 3-26A (Algo) Part b

Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)

REDD COMPANY

Horizontal Statements Model - Year 2

Event

Balance Sheet

Income Statement

Statement of Cash Flows

Assets

Liabilities

Stockholders Equity

Revenue

Expenses

Net Income

Cash

Accounts Receivable

Merchandise Inventory

Accounts Payable

Common Stock

Retained Earnings

Bal.

8,800

2,800

8,300

3,300

1a.

6,300

1b.

(580)

580

(400)

(5,900)

4a.

4b.

5a.

5b.

Bal.

$8,220

$9,280

$8,300

$3,300

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