Powell Company began the Year 2 accounting period with $19,800 cash, $61,800 Inventory, $49,900 common stock, and $31,700 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,800 for $75,800 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $320 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,830 and were sold to Prentise for $3,840. 4. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $53,100 cash from accounts receivable. Exercise 4-16A (Algo) Part b Required b. Post the beginning balances and journal entries to the T-accounts.

Powell Company began the Year 2 accounting period with $19,800 cash, $61,800 Inventory, $49,900 common stock, and $31,700 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,800 for $75,800 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $320 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,830 and were sold to Prentise for $3,840. 4. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $53,100 cash from accounts receivable. Exercise 4-16A (Algo) Part b Required b. Post the beginning balances and journal entries to the T-accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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