At the beginning of 2018, the Redd Company had the following balances in its accounts: Cash $ 8,300 Inventory 2,300 Common stock 7,800 Retained...

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Accounting

At the beginning of 2018, the Redd Company had the followingbalances in its accounts:

Cash $ 8,300
Inventory 2,300
Common stock 7,800
Retained earnings 2,800

During 2018, the company experienced the following events:
Purchased inventory that cost $5,800 on account from ReddCompany under terms 2/10, n/30. The merchandise was delivered FOBshipping point. Freight costs of $530 were paid in cash.
Returned $300 of the inventory that it had purchased because theinventory was damaged in transit. The seller agreed to pay thereturn freight cost.
Paid the amount due on its account payable to Redd Companywithin the cash discount period.
Sold inventory that had cost $6,300 for $9,300 on account, underterms 2/10, n/45.
Received merchandise returned from a customer. The merchandiseoriginally cost $530 and was sold to the customer for $830 cash.The customer was paid $830 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of$630 were paid in cash.
Collected the amount due on the account receivable within thediscount period.
Took a physical count indicating that $2,000 of inventory was onhand at the end of the accounting period.
c-1. Prepare a multistep income statement.
REDD COMPANY
Income Statement
For the Year Ended December 31,2018
Operating expenses
c-2. Prepare a statement of changes instockholders’ equity.
REDD COMPANY
Statement of Changes in Stockholders’Equity
For the Year Ended December 31,2018
Beginning common stock
Ending common stock
Beginning retained earnings
Ending retained earnings
Total stockholders’equity
c-3. Prepare a balance sheet.
REDD COMPANY
Balance Sheet
As of December 31, 2018
Assets
Total assets
Liabilities
Stockholders’ Equity
Total stockholders’ equity
Total liabilities andstockholders’ equity
Prepare a statement of cash flows. (Enter cash outflows asnegative amounts.)
REDD COMPANY
Statement of Cash Flows
For the Year Ended December 31,2018
Cash flows from operatingactivities
Net cash flow from operatingactivities
Cash flows from investingactivities
Cash flows from financingactivities
Net change in cash
Ending cash balance

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Please hit LIKE button if this helped For any further explanation please put your query in comment will get back to you c1 Multistep Income Statement Sales Revenue 9300 Less Sales Returna and allowance 830 Sales Discount 186 1016 Net See Answer

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Transcribed Image Text

At the beginning of 2018, the Redd Company had the followingbalances in its accounts: Cash$8,300Inventory2,300Common stock7,800Retained earnings2,800 During 2018, the company experienced the following events:Purchased inventory that cost $5,800 on account from ReddCompany under terms 2/10, n/30. The merchandise was delivered FOBshipping point. Freight costs of $530 were paid in cash.Returned $300 of the inventory that it had purchased because theinventory was damaged in transit. The seller agreed to pay thereturn freight cost.Paid the amount due on its account payable to Redd Companywithin the cash discount period.Sold inventory that had cost $6,300 for $9,300 on account, underterms 2/10, n/45.Received merchandise returned from a customer. The merchandiseoriginally cost $530 and was sold to the customer for $830 cash.The customer was paid $830 cash for the returned merchandise.Delivered goods FOB destination in Event 4. Freight costs of$630 were paid in cash.Collected the amount due on the account receivable within thediscount period.Took a physical count indicating that $2,000 of inventory was onhand at the end of the accounting period.c-1. Prepare a multistep income statement.REDD COMPANYIncome StatementFor the Year Ended December 31,2018Operating expensesc-2. Prepare a statement of changes instockholders’ equity.REDD COMPANYStatement of Changes in Stockholders’EquityFor the Year Ended December 31,2018Beginning common stockEnding common stockBeginning retained earningsEnding retained earningsTotal stockholders’equityc-3. Prepare a balance sheet.REDD COMPANYBalance SheetAs of December 31, 2018AssetsTotal assetsLiabilitiesStockholders’ EquityTotal stockholders’ equityTotal liabilities andstockholders’ equityPrepare a statement of cash flows. (Enter cash outflows asnegative amounts.)REDD COMPANYStatement of Cash FlowsFor the Year Ended December 31,2018Cash flows from operatingactivitiesNet cash flow from operatingactivitiesCash flows from investingactivitiesCash flows from financingactivitiesNet change in cashEnding cash balance


Cash	$	8,300
Inventory		2,300
Common stock		7,800
Retained earnings		2,800