Answer Happy

Required information [The following information applies to the questions displayed below] The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Beginning Balances Cash $6,080 Inventory 3,140 Common Stock 7,330 Retained Earnings 1,890 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,180. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $210 cash. 3. Returned $485 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $290 allowance 5. Sold merchandise that cost $2,660 for $4,850 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $110 cash. 7. Paid $2,970 on the merchandise purchased in Event 1 Required a. Organize appropriate accounts under an accounting equation Record the beginning balances and the transaction data in the accounts. In the last column of the table, provide appropriate input neededs for the Retained Earnings amounts. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input. leave cells blank if there is no corresponding Retained Earnings input needed.) TERRY'S AUTO SHOP
Events Beg Bal 1 Pur Inv 2 Transport 3. Ret Inv 4. Allow 5a Sales 5b Cost 6. Tran 7. Paid AP End Bal Cash Assets 0 TERRY'S AUTO SHOP Effect of Events on the Financial Statements =Liabilities + Stockholders' Equity Accounts Payable + Common Stock Retained Earnings + + + Inventory 0 + + TIFE+ 0. Accounts Titles for Retained Earnings