5 Part 1 of 3 2.5 points eBook Hint Print References 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 $ 16,000 5,000 20,000 4,000 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $15,000. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash. 3. Returned $2,600 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $1,100 allowance. 5. Sold merchandise that cost $15,000 for $31,000 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $500 cash. 7. Paid $8,000 on the merchandise purchased in Event 1. Mc 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. TERRY'S AUTO SHOP Effect of Events on the Financial Statements Drou Sinckholders Fisite 8 Next 5 cash. 7. Paid $8,000 on the merchandise purchased in Event 1. Part 1 of 3 2.5 points eBook 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. TERRY'S AUTO SHOP Assets Effect of Events on the Financial Statements Liabilities + Stockholders' Equity Account Titles for Retained H Events Cash Inventory Accounts Payable Common Stock Retained Earnings Earnings Beginning Balance Print 1. 16,000+ 800+ 800 15,000- 2. 800- 3. + 2,600 References 4. 1,100 5a, 31,000+ + 50. + 15,000= + 6. 500+ 7. 8,000+ Ending Balance 56.300+ 35,300- 0 + 0