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Required information

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

The trial balance for Terry's Auto Shop as of January $1,$ Year $2,$ follows:

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

Purchased merchandise on account that cost $$4,180.$

The goods in Event $1$ were purchased FOB shipping point with freight cost of $$270$ cash.

Returned $$415$ of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $$255$ allowance.

Sold merchandise that cost $$2,590$ for $$13,800$ cash.

Delivered merchandise to customers in Event $5$ under terms FOB destination with freight costs amounting to

$$190$ cash.

Paid $$2,880$ on the merchandise purchased in Event $1.$

Paid $$8,830$ cash for operating expenses.

c$.$ Prepare a multistep income statement, balance sheet, and statement of cash flows. $($Assume that closing entries have been made.$)$The trial balance for Terry$$s Auto Shop as of January $1,$ Year $2,$ follows:

Account Titles Debit Credit

Cash $ $14,940$

Inventory $3,040$

Common Stock $ $7,490$

Retained Earnings $10,490$

Total $ $17,980$ $ $17,980$

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

Purchased merchandise on account that cost $$4,180.$

The goods in Event $1$ were purchased FOB shipping point with freight cost of $$270$ cash.

Returned $$415$ of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $$255$ allowance.

Sold merchandise that cost $$2,590$ for $$13,800$ cash.

Delivered merchandise to customers in Event $5$ under terms FOB destination with freight costs amounting to $$190$ cash.

Paid $$2,880$ on the merchandise purchased in Event $1.$

Paid $$8,830$ cash for operating expenses.

c$.$ Prepare a multistep income statement, balance sheet, and statement of cash flows