Question
Required information Skip to question [The following information applies to the questions displayed below.] The trial balance for Terrys Auto Shop as of January 1,
Required information
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[The following information applies to the questions displayed below.]
The trial balance for Terrys Auto Shop as of January 1, Year 2, follows:
Account Titles | Debit | Credit |
---|---|---|
Cash | $ 14,740 | |
Inventory | 3,070 | |
Common Stock | $ 7,330 | |
Retained Earnings | 10,480 | |
Total | $ 17,810 | $ 17,810 |
The following events affected the company during the Year 2 accounting period:
Purchased merchandise on account that cost $4,250.
The goods in Event 1 were purchased FOB shipping points with a freight cost of $295 cash.
Returned $445 of damaged merchandise for credit on account.
Agreed to keep other damaged merchandise for which the company received a $230 allowance.
Sold merchandise that cost $2,550 for $13,000 cash.
Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200 cash.
Paid $2,980 on the merchandise purchased in Event 1.
Paid $8,710 cash for operating expenses
Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)
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