Presented below are a number of transactions. determine whether each transaction affects common stock, dividends, revenue, expense, or does not affect stockholders’ equity. provide titles for the revenues and expenses. select not applicable for account title if neither a revenue nor an expense. transaction affects account title (a) costs incurred for advertising. (b) cash received for services performed. (c) costs incurred for insurance. (d) amounts paid to employees. (e) cash distributed to stockholders. (f) cash received in exchange for allowing the use of the company’s building. (g) costs incurred for utilities used. (h) cash purchase of equipment. (i) cash received from investors.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?