10 pped 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 Cash Inventory Common Stock Retained Earnings Beginning Balances $ 6,170 3,030 7,330 1,870 The following events affected the company during the Year 2 accounting period: ces 1. Purchased merchandise on account that cost $4,120. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $410 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $260 allowance. 5. Sold merchandise that cost $2,670 for $4,840 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $180 cash. 7. Paid $2,970 on the merchandise purchased in Event 1. Required: a. Organize appropriate ledger 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 account titles for the Retained Earnings amounts. Note: Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not every cell will require entry. 5. Sold merchandise that cost $2,670 for $4,840 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $180 cash. 7. Paid $2,970 on the merchandise purchased in Event 1. ed Required: a. Organize appropriate ledger 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 account titles for the Retained Earnings amounts. Note: Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not every cell will require entry. Assets Events Cash Inventory Beginning Balance 1. 2. TERRY'S AUTO SHOP Effect of Events on the Financial Statements) Liabilities Accounts Payable Stockholders' Equity Common Stock Retained Earnings Account Titles for Retained Earnings + + + 3. + 4. 5a. 5b 6. 7. Ending Balance 0 01+ 0 C