Required information

Skip to question

[The following information applies to the questions displayed below.]

The beginning account balances for Terrys Auto Shop as of January 1, Year 2, follow:

Account Titles	Beginning Balances
Cash	$ 6,160
Inventory	3,070
Common Stock	7,380
Retained Earnings	1,850

The following events affected the company during the Year 2 accounting period:

Purchased merchandise on account that cost $4,280.

The goods in Event 1 were purchased FOB shipping point with transportation cost of $280 cash.

Returned $470 of damaged merchandise.

Agreed to keep other damaged merchandise for which the company received a $265 allowance.

Sold merchandise that cost $2,660 for $4,890 cash.

Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $145 cash.

Paid $2,880 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.

Note: 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.